Date: 07.07.2026
The Kiel-based shipbuilder TKMS has secured a multi-billion-dollar contract from Canada to deliver up to twelve submarines, to be built in Kiel and Wismar.
The Kiel-based shipbuilder TKMS has achieved a significant milestone by securing its largest submarine contract in history. Canadian Prime Minister Mark Carney made an announcement prior to the NATO summit in Ankara, revealing that Canada would order up to twelve submarines from the Thyssenkrupp defense subsidiary, TKMS. This victory over a South Korean competitor highlights TKMS’s strength in the international defense market.
TKMS Submarine Model for Canada
Canada is set to receive Type 212CD submarines from TKMS. This model was jointly developed by Germany and Norway for shared use. The “CD” in 212CD stands for Common Design, indicating that the submarines will be built similarly, thereby reducing costs and facilitating cooperation. Canada’s partnership positions it as the third major partner adopting this advantageous design.
No Disclosures on Contract Volume
Neither TKMS nor Canada has disclosed specifics regarding the contract’s financials. However, reports indicate that the total cost for the submarines, including service, may be around €20 billion. When factoring in maintenance and operational expenses over the coming decades, the financial volume could reach approximately CAD 100 billion (around €62 billion), according to Canadian media.
Construction Locations: Kiel and Wismar
TKMS is recognized as a leading manufacturer of non-nuclear submarines worldwide. According to previous reports, Canada intends to commission the first new submarines by 2035, although indications suggest an initial delivery might arrive as early as 2033. The construction of the submarines will take place entirely in Germany, specifically at the main site in Kiel and a secondary plant in Wismar, where up to 1,500 jobs are expected to be created.
Political Response to the Order
Political leaders have praised the decision. Federal Chancellor Friedrich Merz commended it as a significant strategic initiative that strengthens ties between Canada, Germany, and Norway for decades to come. Canadian officials view this project as a strong signal of transatlantic cooperation ahead of the NATO summit. Defense Minister Boris Pistorius hailed it as a landmark achievement and expressed the aim of building the largest and most modern conventional submarine fleet in the world.
Implications for Schleswig-Holstein
Schleswig-Holstein’s Minister President Daniel Günther described the announcement as a boon for the region, ensuring greater security for jobs and training positions. The local SPD also remarked on the order’s essential role in enhancing security and its importance for the economic prosperity of Kiel and Schleswig-Holstein.
The TKMS shipyard is set to begin submarine construction this September, as it tests a new pressure vessel production line. With a record influx of orders and an increase in revenue, TKMS is poised to explore further contracts from Canada and India, signaling robust growth in the shipbuilding sector.
