Canada plans to buy 8 submarines upfront and 4 later from Germany: Reports

Canada has proposed to buy Type 212CD submarines from Germany in two batches, with an assurance of eight boats and another four in future. The proposal was made last week in a series of meetings in Ottawa, which took place between federal officials. The meeting took place between the Defence Investment Agency of Canada and representatives of German submarine-maker TKMS and Norwegian defence giant Kongsberg.

Citing sources, CBC News confirmed that since a round of meetings in Europe in September, the Canadian side has been talking for several weeks about the order. Officials in Germany are examining how a reduced order might affect the promised $86 billion in economic investment in Canada.

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Canada intends to buy ‘up to 12 submarines.’

Meanwhile, Thyssenkrupp Marine Systems (TKMS), a major German naval shipbuilding and maritime defence company, is in discussions with its 400-strong supplier network about how a scaled-back order could ripple through their businesses. Last July, when Prime Minister Mark Carney revealed that his government had picked TKMS’s bid over South Korea’s Hanwha Ocean, he stated plainly that Canada intended to buy “up to 12 submarines.”

According to sources speaking on condition of anonymity, federal officials want to keep the door open for future governments to adjust course as deliveries aren’t set to begin until the mid-2030s and could stretch on for more than a decade after that. They also point to an ongoing internal debate over whether crewed submarines might eventually give way to cheaper or more capable drone alternatives.

Replacing the Navy’s ageing Victoria-class fleet with 12 new submarines is projected to cost somewhere between $20 billion and $24 billion upfront, with lifetime costs, covering operations, maintenance, and repairs, potentially exceeding $100 billion across two decades.

A spokesperson for Stephen Fuhr, the secretary of state for defence procurement, said the federal government repeated that the prime minister's pledge was looking for "up to 12 modern submarines in order to protect Canadians by replacing the ageing Victoria-Class fleet."

Sofiya Sapeha stated that the Defence Investment Agency is continuously negotiating with the supplier and is striving hard to secure a contract that ensures maximum benefits for Canadians across the country." Sapeha added: "Because the procurement process is currently active, we are unable to comment on the content and status of the negotiations."