Potential for canadian Submarine Production Emerges as Canada Narrows Bidder Field
OTTAWA – A German official has indicated openness to the possibility of Canada building its own submarines, perhaps alongside German firm TKMS, as Ottawa nears a decision on its multi-billion dollar submarine replacement program. The revelation comes as Canada has narrowed the field of contenders to Germany’s TKMS and South Korea’s Hanwha Ocean.
Currently, Canada does not have the capacity to build submarines, nor do its existing shipyards possess the necessary technical expertise. However, german Armament Secretary Benedikt Plötner suggested that a Canadian production facility would be met with a receptive audience in germany, stating, “If our Canadian friends choose to raise it, I think they will find open ears and minds in Kiel.”
Plötner emphasized the strategic benefit of multiple production and maintainance locations,saying,”If you have two places were you can maintain,repair and build submarines,it’s much better than only having one.” He noted the issue has been raised, but not yet in detail.
The potential for a Canadian facility would also address a growing production capacity challenge for TKMS, which has seen its order book triple in the last five years with demands for frigates, mine-hunting technology, and submarines. Establishing a Canadian presence would likely involve TKMS acquiring a Canadian shipyard or forming a partnership with an existing facility, mirroring previous moves by the company – including the 2020 acquisition of the Oceana shipyard in Brazil to build frigates for the Brazilian Navy and the recent acquisition of MV Werften in Wismar, Germany, to expand production.
The Canadian government, through the newly created Defence Investment Agency (DIA), has signaled that maximizing Canadian job creation will be a key factor in its decision. Cabinet Secretary Stephen Fuhr recently stated Ottawa will favour the bid that “creates the moast Canadian jobs,” and reiterated the importance of a long-term, mutually beneficial relationship with the chosen partner.
“Can we work that relationship in other ways that benefit Canada economically and the partner that we’re working with?” Fuhr asked.
Canada’s submarine replacement program is a critical undertaking to modernize its naval capabilities. A final decision on the contract is anticipated in the coming months.
