TKMS Seeks to Boost Canadian Submarine Bid with Massive Investment Strategy

TKMS is in negotiations with Norwegian and German firms to propose a significant investment package to Canada, amidst competition from a South Korean bidding. Beyond submarines, the discussions involve mining, AI, and battery production. This initiative reflects Germany's push to enhance defense relations amid global tensions.

Warship builder TKMS is actively engaged in discussions with companies from Norway and Germany, aiming to present Canada with a lucrative multi-billion-dollar investment package in a competitive bid for a submarine contract. The investment talks extend beyond submarine manufacturing, delving into sectors such as rare earths, mining, artificial intelligence, and battery production for vehicles, according to CEO Oliver Burkhard.

Previously undisclosed, this investment package could significantly elevate TKMS's chances in the bidding process, where it stands against South Korea's Hanwha Ocean to supply up to 12 advanced submarines to the Canadian navy. This move highlights Germany's increased commitment to strengthening defense collaboration amid escalating global tensions, particularly involving the U.S. and Russia.

While the submarine order is anticipated to exceed €10 billion (approximately $12 billion), the total transaction could be considerably more significant with commitments from allied sectors. Burkhard emphasized that the initiative is not merely about submarines but about presenting a comprehensive economic package to appeal to the Canadian government, aiming for a decision by 2026.

(With inputs from agencies.)