BERLIN, Germany — Canada has narrowed the list of countries it will buy up to 12 new submarines to Germany and South Korea, as Prime Minister Mark Carney toured the ThyssenKrupp Marine Systems (TKMS) shipyard in Germany on Tuesday.

The German-Norwegian consortium TKMS and South Korea’s Hanwha Ocean were selected as “qualified suppliers” after a request for information that closed in February and received 25 responses, according to a Canadian government statement.

Carney, speaking at a news conference in Berlin alongside German Chancellor Friedrich Merz, said there was a clear difference between the companies’ ability to meet Canada’s “very demanding” needs, such as the ability to stay under the ice of the North Sea for weeks and operate in the Pacific Ocean.

“We need to have fleets that can operate year-round and on all three coasts of Canada in harsh conditions. That’s why the options are narrowing down very quickly,” he said.
“We will conduct the procurement process, as we always have, in a thorough, transparent and fair manner.”

Marz said he had personally pushed for Carney to visit.

Canada plans to buy up to 12 submarines to replace its aging fleet, which is scheduled to be retired by 2035; the purchase must be done “with some urgency,” according to a senior government official who briefed reporters informally before the announcement.

The official stressed that while the submarines will be used primarily for patrol, “we should not rule out the combat capability.”

Part of the decision to award the contract will be based on “what they can bring to Canada,” he said. “When you invest that much money, you have to get a return on that investment,” he added.

TKMS announced in May that it would open a new office in Canada. “We’re here to stay; we’re not just looking for a deal, we’re looking for a long-term strategic partnership with Canada,” CEO Oliver Burkhardt said in a statement.

Carney also announced at a news conference that he would visit Hanwha’s facilities in South Korea in October.

Asked ahead of the official announcement whether Carney’s visit to TKMS could be a sign of favoritism toward one supplier over another, a senior official said, “We manage that risk.”

Carney met with Prime Minister Donald Tusk in Poland on Monday before flying to Berlin on a European trip focused on deepening trade and defense ties.

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