There could be 'mutual interest' in Canada building its submarines, says German armament secretary

Jens Plötner says the conclusion would be up to the canadian river regime, but the whim is within the realm of industrial possibleness — and given the state of geopolitics it might make strategic sense.

"This is a program so big, it will span over many, many years. And while there would probably be a mutual interest in building the first in one of the existing production sites in Germany, I think it would be only natural if the Canadian government would ask TKMS to, in parallel, build up production facilities here in Canada, so that subsequent vessels could be built here."

ThyssenKrupp Marine Systems (TKMS) is one of two shipyards in the running to build Canada's new submarine fleet. The Germans and Norwegians have partnered to pitch Canada on buying the Type 212CD submarine.

The other contender is Hanwha Ocean of South Korea.

During Prime Minister Mark Carney's visit to the TKMS shipyard in Kiel, Germany, at the end of August, Oliver Burkhard, the company's CEO, floated the notion of Canada building some of the boats. 

Plötner's remarks expand on this, saying that TKMS has a history of building production facilities in other countries, and noted that's how South Korea got into the submarine business.

Canada narrows choice for new submarines to German, South Korean bidders

Canada has never built submarines and the country's existing shipyards don't have the technical know-how to do so at the moment.

It's expected that regardless of which bid is successful, a submarine maintenance facility will have to be constructed in Canada in order to keep such a large fleet in service.

"I think having not only a maintenance and training site here in Canada, but actually a production site, would be an important contribution to our overall resilience in times of crisis or, God forbid, war," Plötner said.

"If you have two places where you can maintain, repair and build submarines, it's much better than only having one."

Canadian and German officials have not formally discussed the notion of a Canadian production facility. But, Plötner said, all they have to do is ask.

"I think the issue has been raised, but not yet in such a concrete manner. I think we're not in that phase yet," Plötner said. "But as I said, if our Canadian friends choose to raise it, I think they will find open ears and minds in Kiel."

Establishing a Canadian submarine manufacturing facility would benefit TKMS because the company is facing a production capacity issue. TKMS, which makes frigates and mine-hunting technology in addition to submarines, has tripled its order book in five years.

From a practical perspective, such a scheme would require TKMS to acquire a Canadian shipyard — or form some kind of partnership with an existing facility.

The company recently acquired the MV Werften shipyard in Wismar, Germany, in order to expand production.

Aside from helping the South Koreans get into the submarine business more than 20 years ago, TKMS acquired the Oceana shipyard in Brazil in 2020 to build frigates locally for the Brazilian Navy's Tamandaré-class program.

Canada's submarine replacement program will be managed out of the newly created Defence Investment Agency (DIA).

The cabinet secretary in charge of it, Stephen Fuhr, went on the record a few weeks ago to say Ottawa will favour the submarine pitch that creates the most Canadian jobs when it decides whether to award a contract.

At the unveiling of the agency this week, he reiterated his stance.

"If you go and spend billions of dollars on submarines with another country, that's a relationship you're going to have for a long time," Fuhr said.

"Can we work that relationship in other ways that benefit Canada economically and the partner that we're working with?"

Senior reporter, defence and security

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