Canada to announce submarine supplier as NATO summit looms
Hanwha's KSS-III faces off against TKMS's 212CD in tens-of-billions submarine procurement race.
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The federal government is expected to announce its chosen supplier for up to 12 submarines in the coming days as the July NATO summit approaches—a massive order worth tens of billions of dollars that has drawn unusual attention to a typically quiet military procurement.
South Korean manufacturer Hanwha and European rival TKMS are the final two bidders. The competition has stood out for its unconventional public campaign: Hanwha launched a massive advertising blitz plastering Canadian airports, broadcast TV, and streaming platforms with spots featuring the KSS-III submarine. The ads appeared in cities as far from the coasts as Winnipeg and Calgary—an approach that has surprised competitors accustomed to government-focused sales pitches.
"This is nuts, honestly," said Oliver Burkhard, CEO of TKMS, in an interview at the CANSEC military trade show in May. "We're not used to this." He noted that typical competitors—French, Spanish, Italian, British, and Swedish submarine makers—do not pursue public advertising. Submarines aren't supposed to be visible at all. These competitions usually focus on what the subs can do, with sales pitches aimed at governments, not the general public.
Hanwha, making its first attempt to export submarines, is banking on a long-term play. While it is not yet known in countries like Canada as a top defence supplier, the company boasts a massive shipyard and has offered Ottawa a fast delivery schedule. The Korean navy already uses the KSS-III; one sailed to Esquimalt, B.C. in May.
TKMS's 212CD is the firm's latest design and has yet to start rolling off assembly lines. It offers cutting-edge engineering from a long-established manufacturer with a diamond-shaped hull designed to make it less detectable by sonar. TKMS has campaigned on interoperability, emphasizing that Germany and Norway—NATO alliance countries—are buying the same model, allowing for shared training and repairs.
Throughout the two-year-long procurement competition, the federal government rarely discussed the boats' capabilities themselves. The navy made clear early on that either model would suffice, shifting focus elsewhere in the unusual bidding process.
