Canada is considering splitting its order for 12 next-generation submarines equally between South Korea and Germany, according to local media reports. The construction of an automobile production plant in Canada, which had initially drawn attention, was reportedly not included in either country's final proposals.
According to major Canadian media outlets on the 3rd, the Canadian government has received proposals from final candidates Hanwha Ocean (042660) of South Korea and Germany's ThyssenKrupp Marine Systems (TKMS) for the project worth up to 60 trillion won. The results of the contract competition are expected to be announced as early as next month.
A senior Canadian government source told local media, "We are examining a plan to deploy six TKMS 212CD-class submarines on the Atlantic coast and six Hanwha Ocean KSS-III Batch-II submarines on the Pacific coast to strengthen regional operational capabilities." This is interpreted as a strategic decision by the Canadian government to reduce dependence on the United States and expand trade relations with European and Asian countries.
However, concerns exist within the government that operating two types of submarine fleets could complicate supply chains and make parts inventory management more difficult. Canadian Prime Minister Mark Carney also expressed doubts about a mixed fleet composition last September, emphasizing the economic efficiency of operating a single fleet. Nevertheless, analysts suggest that split ordering is emerging as a pragmatic compromise for Canada, which needs to strengthen trade and economic ties with other regions and attract investment amid U.S. President Donald Trump's tariff policies.
The local construction of an automobile plant, which had attracted attention for its economic ripple effects, was reportedly excluded from the final proposals. The Canadian government had directly and indirectly requested that South Korea and Germany build finished vehicle plants locally in connection with this submarine contract. However, local media reported that neither country included plans for new automobile production facilities in Canada in their recently submitted proposals.
Canadian private broadcaster CTV reported, "Hanwha Ocean proposed building a hydrogen fuel infrastructure hub and local production facilities for torpedoes to be mounted on submarines instead of an automobile plant, while Germany offered investment in Canada's steel industry."
The Canadian government plans to evaluate the submitted final proposals based on four criteria—technical capability, maintenance, financial status, and strategic economic partnership—before announcing the final decision as early as April.