Decision on whether to split submarine contract would be led by Navy, official says
The Royal Canadian Navy will lead the decision on whether to split the submarine contract between South Korea's Hanwha and Germany's TKMS. The federal government aims to finalize this significant military procurement by the end of June. Concerns have been raised about the implications of a mixed fleet on supply chains and parts inventories.
- ▪The submarine contract could be valued between $60 billion and $120 billion over its life cycle.
- ▪Defence analysts have expressed concerns that splitting the contract may complicate supply chains.
- ▪Prime Minister Mark Carney previously indicated a preference for a single fleet to maximize efficiencies.
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Open this photo in gallery:National Defence Minister David McGuinty, back left to right, South Korea Prime Minister Kim Min-seok, Prime Minister Mark Carney and Hanwha Group Vice-Chariman Kim Dong Kwan speak after touring a submarine at the Hanwha Ocean Shipyard in Geoje Island, South Korea, on Oct. 30, 2025.Adrian Wyld/The Canadian PressShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountThe man in charge of evaluating competing bids for new Canadian submarines says any decision on whether to split the contract between two companies would be led by the Royal Canadian Navy.The federal government has said a decision on one of the biggest military procurements in Canadian history, involving South Korea’s Hanwha or Germany’s TKMS, should come by the end of…
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