Canada closes in on decision for 12‑submarine contract, bids from South Korea and Germany

The Canadian government is evaluating two rival proposals to supply the Royal Canadian Navy with up to 12 new submarines. South Korea’s Hanwha Oceans and Germany’s TKMS have submitted competing bids worth tens of billions of dollars.

Secretary of State Stephen Fuhr said the winner should be announced by the end of June, describing the deal as possibly the largest military procurement in Canadian history. The project aims to replace the aging Victoria‑class fleet, of which only one vessel remains operational and is expected to be retired by 2035.

TKMS emphasizes NATO interoperability and a proven track record, while Hanwha highlights rapid delivery and economic benefits, citing a KPMG estimate of $60 billion in economic opportunities, 22,500 full‑time jobs per year and $94 billion in GDP growth. The fast‑track timeline, highlighted at the CANSEC defence expo, reflects Ottawa’s desire to secure domestic economic gains and modernise its submarine capability.