According to the report, the cabinet of Canadian Prime Minister Mark Carney is demanding that both South Korea and Germany propose additional investments that would benefit Canadian industries, including automotive and steel sectors. This submarine deal is estimated to be worth up to CAD 100 billion (approximately USD 108 billion) when factoring in decades of operational and maintenance costs.
Hanwha Ocean of South Korea and Thyssenkrupp Marine Systems (TKMS) of Germany are competing for the contract. Both companies have submitted comprehensive proposals that include not only submarine capabilities but also long-term industrial cooperation with Canada.
Hanwha is highlighting its ability to deliver the KSS-III submarines quickly, having recently showcased one of its operational vessels in Victoria Harbor, British Columbia, at the end of May. The company has proposed delivering four submarines by 2035.
In contrast, TKMS is focusing on its developing 212CD-class submarines, emphasizing interoperability with NATO allies and strategic ties with Europe. German Defense Minister Boris Pistorius recently visited Ottawa, conveying that the future of the Canadian Navy depends on close defense cooperation with Europe.
Canada's urgency in acquiring new submarines stems from concerns over its aging naval capabilities. Despite having one of the longest coastlines in the world, spanning three oceans (Pacific, Atlantic, and Arctic), Canada reportedly has only one operational submarine. Additionally, increased Arctic activities by Russia and China have led the U.S. to urge Canada to expand its Arctic defense responsibilities.
Military assessments are closely contested. Canadian Navy Commander Angus Topshee praised the submarine designs from both South Korea and Germany, noting that the KSS-III's larger hull and vertical missile launch capabilities are significant advantages, while the 212CD-class is recognized for its stealth performance.
The Canadian government is considering not only military performance but also economic impacts as key factors in its decision-making process. Canadian Industry Minister Mélanie Joly has publicly stated, "We want automotive plants."
In response, Hanwha has proposed producing armored vehicles in Canada if it secures the submarine contract. The company is also collaborating with Algoma Steel on material supply and has agreed to work with Babcock Canada on training and maintenance.
TKMS is pursuing supply chain cooperation with Canadian critical mineral firm E3 Lithium and plans to involve Canadian companies like CAE and Sysmex in fleet support. Both companies have also proposed partnerships with Canadian artificial intelligence firm Cohere and initiatives linked to independent space launch capabilities.
Bloomberg noted that this decision represents a choice for Canada between strengthening ties with Asian economic powers and its long-standing NATO allies. The outcome of this selection could impact Canada's military capabilities, industrial base, and alliances for decades.
David Perry, a senior fellow at the Canadian Global Affairs Institute, described the submarine project as a matter of solidifying economic, strategic, and political partnerships for the next 75 years. Roland Paris, a professor of international relations at the University of Ottawa, stated that restoring diplomatic relations with the losing bidder will be a priority.
Philip Lagasse, an assistant professor at Carleton University, assessed that if South Korea wins the submarine contract, it would bolster its position as a major submarine exporter. Conversely, he noted that Germany has already established itself as a key submarine producer linked to NATO, suggesting that its commercial gains may be limited.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.