Ottawa [Canada], July 7 (ANI): Canadian Prime Minister Mark Carney on Tuesday announced that Canada has selected German manufacturer TKMS as the preferred supplier for its next fleet of submarines, describing the project as the largest defence procurement in the country's history.

In a post shared on X, Carney said the agreement would strengthen Canada's strategic capabilities while creating significant economic benefits for Canadian workers and industries.

'Canada is designating German manufacturer TKMS as the preferred supplier for our next fleet of submarines. This will be the largest defence procurement in our nation's history and it will have enormous, lasting benefits for Canadian industries and workers,' Carney said.

He added that Canada would work closely with Germany and Norway on the project.

'Together with our German and Norwegian Allies, we will build at speed and scale to expand our strategic capabilities and defend our sovereignty. We will build this fleet to build Canada strong,' Carney said.

https://x.com/markjcarney/status/2074250224726409629

The announcement was welcomed by German Chancellor Friedrich Merz, who described the procurement as a strong signal of transatlantic and European cooperation.

'This is a strong signal for our transatlantic and European partnership: Canada is procuring German-Norwegian 212CD-class submarines. Thank you for your trust, @MarkJCarney and @jonasgahrstore,' he wrote on X.

https://x.com/bundeskanzler/status/2074230025591587210

Canada has selected German shipbuilder TKMS to build up to 12 submarines as part of its plan to replace its ageing fleet in what is expected to be the country's largest-ever defence procurement programme, Al Jazeera reported.

'In a more dangerous and divided world, Canada must be prepared to defend our interests, protect our citizens, build our economy, and secure our future,' Canadian Prime Minister Mark Carney said on Monday ahead of his visit to Turkiye for the NATO leaders' summit, as reported by Al Jazeera.

'Together with our German and Norwegian Allies, we will build at speed and scale to expand our strategic capabilities and create greater strategic autonomy. We will build this fleet to build Canada strong,' Carney said.

Carney did not reveal the financial value of the proposed deal.

TKMS, majority-owned by German industrial group Thyssenkrupp, submitted its bid jointly with Norway and was selected over South Korea's Hanwha Ocean after months of competition. Germany, Norway and Canada are all members of NATO, as reported by Al Jazeera.

Canada has said the contract is expected to be finalised by the end of next year, with the first four submarines scheduled for delivery by 2034.

Canada currently operates a fleet of four submarines.

According to Al Jazeera, Canada's The Globe and Mail estimated the submarine acquisition could cost between 20 billion and 30 billion Canadian dollars (USD 14 billion to USD 21 billion), while the total lifetime cost, including operations, maintenance and upgrades, could reach between 40 billion and 50 billion Canadian dollars (USD 28 billion to USD 35 billion).

Canada has faced continued pressure from US President Donald Trump to increase defence spending, similar to other NATO allies. The country has since achieved NATO's target of spending 2 per cent of its gross domestic product (GDP) on defence ahead of schedule.

NATO member states have also agreed to raise defence and security-related spending to 5 per cent of GDP by 2035. Shares of TKMS closed 11 per cent higher following the announcement, Al Jazeera reported. (ANI)