Canada to buy 12 hi-tech German submarines after bidding war | Nato
Canada has chosen a German consortium to build a dozen state-of-the-art submarines in one of the country’s largest defense contracts to date, further deepening NATO ties ahead of a key summit this week.
On Monday, prime minister Mark Carney announced the winner of the tightly contested battle for the lucrative government contract to replace a fleet of aging, second-hand submarines, many of which are under maintenance.
For months, both ThyssenKrupp Marine Systems (TKMS) and South Korean shipbuilder Hanwha Ocean have been promising Canada technology-heavy submarines and proliferation economic benefits.
The winning TKMS became the largest manufacturer of non-nuclear submarines and one of the important suppliers of the NATO fleet. Canada has previously stated that the diesel-electric offerings of both companies (TKMS’s model 212CD submarine and Hanwha’s KSS-III Batch-II submarine) are suitable for its military needs.
The order for 12 submarines marks the first time Canada has purchased brand new ships. The Royal Canadian Navy currently has four submarines, which were purchased second-hand from England in 1998. Three of the four Victoria-class submarines are being maintained.
The new submarines will likely be used to help Canada gain a stronger foothold in the Arctic. TKMS ships are designed to use modern stealth technology to operate with minimal detection in disputed areas and will be able to conduct long surveillance missions along key Arctic routes, including the Northwest Passage. Hanwha’s ships are significantly larger than the German ship, and company and industry analysts said they would give Canada greater capabilities to deploy powerful weapons and conduct long-term patrols in the deep ocean.
The submarine order is estimated to be worth more than US$12bn (£9bn), but the contract also includes nearly half a century of maintenance, meaning the total bill could exceed US$70bn.
The Canadian federal government and TKMS will still need to engage in lengthy negotiations to finalize the contract; This is a process that may take years.
Last year, Carney led a delegation of senior cabinet ministers to visit TKMS’s construction facility in Kiel, Germany, and toured the newly built submarine at Hanwha’s facility in Geoje, South Korea.
Senior officials from both countries have also made visits to Canada to sell the wider economic benefits of their respective fields. German officials have repeatedly referred to broader compatibility with NATO, and TKMS reportedly hopes to move forward in this regard as well. expand the scope of the contract It will include possible investments in rare earth elements, mining, artificial intelligence and battery production for the automotive sector.
South Korea is not a member of NATO, but Hanwha representatives said the company will use steel from Algoma’s factory in Sault Ste Marie, Ontario, to produce armored military vehicles in Canada. Hanwha also spent millions extensive advertising campaignto contain Voice of the well-known Canadian journalist Peter Mansbridge, It touts the benefits of CSR-III.
Carney’s Liberal party has pledged to significantly increase government defense spending, pledging to allocate 5% of gross domestic product by 2035. Canada recently announced It reached 2 percent of GDP, a long-time target for NATO members.
Canada has also suggested it is open to larger purchases from European contractors as part of a larger effort to reduce its dependence on the United States. It has committed to purchasing 18 American-made Lockheed Martin F-35 Lighting II jets, a fighter jet long favored by the Royal Canadian Air Force for interoperability with the North American Aerospace Defense Command, a binational military organization shared between Canada and the United States. But recent political tensions between the two countries have pushed Ottawa to turn to other suppliers to help modernize its air force.
Canada is considering purchasing 72 Saab-made Gripen fighter jets. Sweden based company he said It was stated that if Canada purchases the latest generation fighter jet in addition to the six GlobalEye surveillance aircraft it has agreed to purchase, the deal would create up to 12,600 jobs in Canada, marking another major defense industry project for the country.
On Monday, NATO secretary general Mark Rutte told reporters that alliance members were about to announce multibillion-dollar new contracts, calling it “an important piece of kit that we need to deter and defend.”
