Germany's Thyssenkrupp Marine Systems Selected for Canada's Submarine Program
Quick Look
- Germany's Thyssenkrupp Marine Systems (TKMS) has been chosen as the preferred bidder for Canada's multibillion-dollar submarine program, valued at up to $39.1 billion.
- This decision deals a setback to South Korean contenders Hanwha Ocean and HD Hyundai Heavy Industries.
AI-generated summary
Why It Matters
Canada has selected Germany's Thyssenkrupp Marine Systems as the preferred bidder for its multibillion-dollar submarine program, a move that sidelines South Korean contenders.
SEOUL, July 7 (Yonhap) -- South Korea has failed to win Canada's multibillion-dollar submarine program, with Germany's Thyssenkrupp Marine Systems (TKMS) selected as the preferred bidder.
Canadian Prime Minister Mark Carney announced TKMS' selection ahead of his departure for the North Atlantic Treaty Organization (NATO) leaders' summit in Turkey on Monday (local time), dealing a setback to the South Korean consortium led by Hanwha Ocean Co. and HD Hyundai Heavy Industries Co.
The project involves the construction of up to 12 diesel-electric submarines under a procurement program valued at up to 60 trillion won (US$39.1 billion), including construction and long-term maintenance.
TKMS defeated the South Korean consortium in the final competition for one of Canada's largest-ever naval procurement programs.
Canada, a NATO member, has long relied on European suppliers for its submarine fleet, with its current Victoria-class submarines acquired second-hand from Britain.
Open Questions
- Details of the final contract with TKMS.
- Impact on South Korean defense industry's future bids.
