The CEO of TKMS, a warship builder, said that he is in discussions with 'Norwegian, German and German companies in order to offer a multibillion-dollar investment package to Canada as part of a fiercely competitive'submarine tender. He hopes to beat a competing South Korean bid.

Oliver Burkhard said that the talks "go beyond submarines" and include possible investments in rare earths mining, artificial Intelligence, and battery production for automotive sectors. The previously undisclosed investment package could help TKMS win the tender for supplying up to 12 ultra-modern submarines to Canada’s navy. This reflects Germany's intensifying efforts to "strengthen defense cooperation" in light of increasing geopolitical tensions. The U.S. is attempting to claim Greenland, while Russia is continuing its war in Ukraine.

The Investment Package goes beyond Submarines

Burkhard stated that TKMS is in discussions with German startup Isar 'Aerospace regarding the investment initiative, but did not mention the other companies involved.

According to industry sources, the submarine order alone could be worth over 12 billion euros. According to those briefed on the discussions, the total package may be worth much more if other sectors pledge investment.

It is not just about submarines anymore. Burkhard said on the sidelines an event in Frankfurt that it is about the "what's beyond" and the goal was to convince the Canadian Government of the offer.

TKMS, the largest non-nuclear submarine manufacturer in the world, accounts for 70% of NATO’s conventional fleet.

Burkhard stated that TKMS asked potential partners about foreseeable investments in Canada, and whether they should be included?in offset obligations or mandatory financial commitments made over a period of 30 years.

He said, "Ofcourse that includes the defense sector."

Canada, with the world's longest coastline, said that its plans to purchase new submarines are aimed at maximising the economic benefits of the defence strategy.

Burkhard said that Germany's Economy and Defence Ministries as well as Chancellery also participated in the discussions. He added that he expected Canada to make a?decision in 2026.

The German economy ministry has referred the Defence Ministry, which had no immediate comments.

The German Chancellery, as well as the Canadian economy and defense ministries, did not respond immediately to a comment request.

Hanwha Ocean has declined to comment.

TKMS offers its 212CD-class submarine, which is also being supplied to Norway under a joint modernisation project, as part of this tender.

(source: Reuters)