The CEO of TKMS, a warship builder, said that he is in discussions with Norwegian and German firms to offer a multibillion-dollar package to Canada 'in a fiercely-competitive submarine tender. He was trying to beat a rival 'South korean' bid.

Oliver Burkhard said that the talks went beyond submarines to include possible investments in rare earths mining, artificial Intelligence, and battery production for automotive sectors. TKMS could benefit from the previously unknown investment package, which is a plan to provide up to 12 ultra-modern submarines for Canada's Navy. This reflects Germany's intensifying efforts to strengthen defence cooperation, in light of the rising geopolitical tensions. The U.S. is attempting to claim Greenland while Russia continues to wage 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 he did not mention the other companies involved.

According to industry sources, the submarine order alone could be worth over 10 billion euros ($12 billion). According to those briefed on the discussions, the total package may be worth much more depending on other sectors' investment pledges.

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 if they should be included in the so-called offset 'obligations,' or mandatory financial commitments made over a period of 30 years.

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

Canada, with the longest coastline on the planet, said that plans to purchase 'new submarines' were part of its defense strategy and aimed to maximise economic benefits.

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

Germany's Economy Ministry referred the Defence Ministry, which stated that it would not comment on confidential consultations out of principle.

Requests for comments were not immediately responded to by the German Chancellery, Canada's Economy and Defence Ministries or Canada's Ministry of Defense.

Hanwha Ocean has declined to comment.

TKMS is offering a 212CD-class submarine, which is being supplied to the Norwegian navy as part of a joint modernisation project. Burkhard stated that between 30 and forty staff were working on this package.

(source: Reuters)