Canada orders twelve submarines from TKMS in Kiel – Contract valued at around 20 billion euros

The background to the decision is a tender from 2021. After repeated setbacks, the Canadian government at that time decided in favor of procuring twelve conventional boats. Until now, Canada has sourced around 80 percent of its military goods from the United States; with the German contract, this share is shifting noticeably.

Background of the Procurement

The German and Norwegian navies also intend to each purchase six submarines of the Type 212 CD by the end of the 2030s. Reports also speak of around 20 billion euros for the boats as well as up to 40 billion euros more for maintenance, service, and spare parts.

For TKMS, the contract is an important industrial signal. The company announced it intends to create up to 1,500 jobs at the site. The Wismar shipyard location is also involved in production.

The step comes during a phase of increased defense spending within NATO. Last year, members agreed to spend around 3.5 percent of their economic output on the military by 2035. Canada is following this line with its order.

Industrial Consequences for TKMS

Observers also see the purchase as a sign of Canada's stronger European alignment. The contract with a European manufacturer continues the decades-long practice of implementing Canadian naval projects predominantly with North American partners, while simultaneously opening a new major customer for European shipyards.

The announcement was made via the radio station Deutschlandfunk on 7 July 2026. Official contract details, delivery schedules, and the industrial split between Kiel and Wismar are expected in the coming months.

With the order, Canada is also positioning itself among those NATO states modernizing their conventional submarine fleets. The submarines are considered particularly suitable for operations in coastal waters and can also operate in ice-covered regions – a factor that has gained importance in light of Arctic policy in recent years.