Ottawa has named Thyssenkrupp Marine Systems of Germany as its preferred supplier to replace our aging submarine fleet, moving us closer to a multibillion-dollar buy that has spent years drifting in committee.
The announcement, reported by Torys LLP, follows a compressed competition run by the newly established Defence Investment Agency. In August 2025, the government narrowed the field to two bidders—Germany's Thyssenkrupp Marine Systems and South Korea's Hanwha Ocean—before issuing proposal instructions that autumn.
The Canadian Defence Review reports that proposal instructions went out in November 2025 with a March 2026 deadline. By July 2026, Ottawa had selected the German firm as the preferred partner for contract negotiations. The project is structured as a long-term partnership involving design, construction, sustainment, and technology transfer, backed by a Defence Investment Agency that now applies a Build-Partner-Buy framework to all major acquisitions.
Our sailors need boats that can patrol three oceans, including the under-ice reaches of the Arctic, without breaking down halfway through a deployment. The real test isn't the signature on the initial contract. It's whether Ottawa can keep these hulls in the water once they arrive, or if we'll spend decades watching them sit pier-side for want of spare parts.
Contract negotiations are underway, with no final price tag yet made public.