The Canadian government said on the 6th (local time) that it selected Germany's Thyssenkrupp Marine Systems (TKMS) as the preferred bidder for the Canada Patrol Submarine Project (CPSP).
Prime Minister Mark Carney announced that day at the naval base in Halifax, Nova Scotia, that he is launching talks with TKMS on a contract to introduce next-generation submarines.
Carney said, "If negotiations with TKMS fall through, the Canadian government also holds the right to negotiate with Hanwha Ocean," adding, "This decision was difficult and a close call in which we had to choose between two very outstanding suppliers."
The project will build up to 12 new submarines to replace the Victoria-class submarines slated for retirement. Including maintenance and operation expenses over the next 30 years, the project is estimated to be worth up to 60 trillion won.
Industry watchers say geopolitical factors influenced the decision. Bloomberg News reported, "As the United States takes a more skeptical stance toward the North Atlantic Treaty Organization (NATO), this decision aligns with Prime Minister Carney's approach of strengthening cooperation with Europe."