Canada Picks German-Norwegian Team for 12 Submarines
Canada has chosen a German-Norwegian team to build 12 new submarines. The team is led by defence company TKMS.
The deal was announced in Halifax, Canada. Prime Minister Carney called it the largest defence deal in Canadian history.
The submarines alone will cost about $24 billion. Total costs including upkeep could reach $40 to $50 billion.
The first submarines could arrive as early as 2034. Germany had pushed hard to win this order.
The deal shows Canada moving away from US suppliers toward Europe. Carney is heading to a NATO summit in Ankara, Turkey. The submarine deal is expected to be a key topic there.
Klear Note — Canada's navy needs new submarines to patrol its Arctic waters. NATO allies often buy weapons from each other. This deal is Canada's biggest military purchase ever.
Key Terms 4
- TKMS German defence company that builds submarines for navies worldwide
- NATO summit Meeting of leaders from NATO member countries to discuss defence
- lifecycle costs Total cost of owning something including repairs and upgrades over time
- preferred bidder Company chosen first to negotiate a contract before it is signed