Kiel shipyard TKMS in view: Canada is planning a billion-dollar submarine deal!

Kiel shipyard TKMS in view: Canada is planning a billion-dollar submarine deal!

On August 26, 2025, Canada's Prime Minister Mark Carney took a significant step for the future of the Canadian Navy. In Kiel he met with Schleswig-Holstein's Prime Minister Daniel Günther and Defense Minister Boris Pistorius to discuss plans to modernize Canada's submarine fleet as part of a EM project. Carney and his delegation were previously in Berlin, where they also met with Chancellor Friedrich Merz before visiting the state-of-the-art Thyssenkrupp Marine Systems (TKMS) shipyard on the Kiel Fjord. There they were presented with a Class 212A submarine, which demonstrated the innovative power of German submarine technology.

Carney's visit to the Kiel shipyard is related to Canada's ambitions to acquire eight to twelve conventional submarines. TKMS is one of the two main contenders for this major order, which could be worth tens of billions. The new submarines are specifically designed for use in the Arctic and under ice and are expected to be operational by 2035 at the latest. Shipyard boss Oliver Burkhard emphasized the technical superiority of the Kiel shipyard and emphasized the low competition that TKMS has worldwide.

A signal for defense cooperation

The task of modernizing the underwater fleet is not just an economic undertaking; it also has security policy dimensions. Günther underlined the strategic importance of Schleswig-Holstein as a "hub between the North and Baltic Seas", while Carney's visit serves to strengthen transatlantic defense cooperation. The Class 212CD submarines offer long dive times and advanced weapon systems critical to the surveillance of Canadian coastal waters.

A contract for TKMS could significantly strengthen the northern German economic region. The shipyard in Wismar, which is currently being upgraded for 220 million euros, is expected to create around 1,500 new jobs by 2029. TKMS currently employs around 8,500 people. In recent years, the company has invested over 250 million euros in the Kiel location and opened an office in Ottawa in May 2025 to intensify cooperation with Canadian partners. Such steps show that the new federal government under Merz is committed to Germany's return as a reliable partner in defense matters.

The next steps

Recently, Carney announced that he will visit a rival submarine building contractor in South Korea in October. The Canadians are therefore committed to identifying the most attractive offers for their subsea fleet. Regardless of the outcome of these negotiations, the decision to build submarines in Canada could also be an option under consideration.

In summary, the Canadian Prime Minister's visit to Kiel shows the close connection between economics and security policy and could be decisive for a realignment of the defense strategy of both countries. While Schleswig-Holstein positions itself as a key partner in the defense industry, it remains to be seen how these developments will impact international defense cooperation.