Canada Awards TKMS with Largest-Ever Contract for Up To Twelve Type 212CD Submarines

The Canadian government has signed a landmark contract with German shipbuilder Thyssenkrupp Marine Systems (TKMS) to build up to twelve Type 212CD submarines, marking the largest order in TKMS’s history. Announced by Canadian Prime Minister Mark Carney in Halifax just days before the NATO summit in Ankara, the deal is estimated to be worth around 20 billion euros for the submarines alone, with long-term costs projected to reach approximately 100 billion Canadian dollars.

The submarines, a joint German-Norwegian development, are designed specifically for Arctic and Atlantic operations, featuring 72-meter lengths and advanced sensors for underwater and surface threat detection. As Canada replaces its aging British submarine fleet, this agreement strengthens transatlantic security cooperation amid heightened geopolitical tensions, particularly relating to Russian deterrence efforts.

German Defense Minister Boris Pistorius, who actively championed the deal, highlighted that these vessels will form the world's largest and most modern conventional submarine fleet, underscoring the strategic importance of the contract for NATO’s presence in the high north. Chancellor Friedrich Merz described the agreement as a milestone exemplifying long-term partnership between Canada, Germany, and Norway.

Construction will take place at TKMS’s facilities in Kiel and Wismar, Germany, creating up to 1,500 jobs domestically. TKMS, a leader in non-nuclear submarine technology, aims for the first submarines to be operational by 2035, possibly earlier, underscoring the accelerated timeline to bolster Canada’s defense capabilities.

This substantial defense procurement strengthens European and North American cooperation, evidencing a commitment to collective security in sensitive maritime regions and reinforcing NATO’s strategic posture ahead of the summit.