Assahafa.com
As he delivered the hard sell pitch last spring for Canada to buy his submarines, Oliver Burkhard, the CEO of Germany’s ThyssenKrupp Marine Systems (TKMS), used the phrase “strategic partnership” half a dozen times.
Canada would be part of “a family,” he said.
We will — perhaps — soon get a better sense whether that approach is music to the ears of Prime Minister Mark Carney and key members of his cabinet.
It was announced Tuesday that Canada had narrowed the list of contenders to build the navy’s new submarines to two bidders — TKMS and South Korea’s Hanwha Ocean Ltd.
The prime minister met German Chancellor Friedrich Merz and participated in a business roundtable with the goal of diversifying Canada’s trade and coming up with a critical minerals partnership.
Prime Minister Mark Carney, in Germany with Chancellor Friedrich Merz, was asked whether the government would use a full competition or negotiate with a preferred bidder as Canada looks to buy new submarines. Carney stressed the process would be fair and transparent but provided no specifics on process.
That partnership will see the two countries deepen cooperate to secure critical minerals supply chains and co-fund new projects that contribute to a range of industries, the Prime Minister’s Office said in a statement.
However, as with many elements of his European trip this week, defence and security issues are near the top of Carney’s agenda.
The prime minister toured the TKMS shipyard on Tuesday afternoon, where he saw elements of one submarine under construction and long-term maintenance work being carried out on an older variant of the boat Canada is looking at buying.
Carney emerged from a tour inside of the submarine, joking with the naval officer accompanying him and saying: “Sign me up.”
He was accompanied on the tour by Industry Minister Mélanie Joly and Defence Minister David McGuinty, as well as top security officials and advisers.
Carney said he is committed to a fair transparent competition and plans to visit the Hanwha yard in South Korea this fall.
Federal officials, speaking on background, said the debate within the federal government is now whether to go the route of requesting full proposals or straight into contract negotiations with a preferred bidder.
Hanwha submitted a detailed unsolicited bid for Canada’s consideration last March. TKMS — in its interview with CBC News — last spring said it had only answered the federal government’s request for information but provided fulsome responses.
The South Korean proposal had a price tag of $20 billion to $24 billion, depending on what the federal government requested.
On Tuesday, Burkhard wouldn’t discuss dollar figures, but he opened the door to an intriguing possibility.
Canada has never had the specialized capacity to build submarines and always purchased off-shore. The Liberal government has made it clear that it intends to leverage every defence dollar it can toward rebuilding the country’s defence industrial capacity.
Burkhard would not rule out setting up some sort of manufacturing facility in Canada.
“If they want to demand for special, let’s say reasons to build them in Canada, we would also be able to do that because this is one of our success stories as TKMS,” he said. “We’re used to this model.”
The company, he said, was willing to transfer technology and intellectual property to make it happen, if necessary.
Competition between the German and South Korean bidders has been fierce.
Merz said on Tuesday that he campaigned for Carney to visit the yard and that he believes drawing Canada into the submarine partnership with Norway is important for Transatlantic security.
In the high-stakes, multibillion-dollar gambit to replace Canada’s aging — and largely inoperable — Victoria-class submarines, the German-designed, Norwegian-partnered Type 212CD is perhaps the most well known and heavily marketed of the contenders.
Last spring on the margins of the Ottawa arms expo CANSEC, Burkhard, senior German defence official Jasper Wieck and Norwegian Capt. (N) Oystein Storebo all sat down with CBC News to discuss the TKMS information pitch, which had been submitted last year at the request of the Canadian government.
Shipyards in Sweden and Spain also responded to requests for information, but in a statement Joël Lightbound, the Public Works and Procurement Minister said the decision to narrow the field was informed by a thorough assessment of Canada’s submarine requirements, including construction and delivery timelines.
Canada is looking to buy 12 conventionally powered submarines.
Germany and Norway became involved several years ago in a joint venture to construct the Type 212CD, which is based on the well-established German Type 212A design.
Storebo, Norway’s program director of submarines, said the 212CD (CD refers to common design) was designed for operations in all oceans, notably the Arctic.
It was a necessity because Norway is an Arctic country. With its air-independent propulsion system, the diesel electric boat can stay submerged for more than three weeks, Storebo added.
The initial $8.1-billion (5.5-billion euro) order was for six 212CDs — two for Germany and four for Norway. Each country is now planning to build more, bringing the total order up to 12 boats.
The German Navy will receive its first 212CD in 2028 while Norway is expected to be in the water the following year.
The TKMS pitch also involves a plan to construct a submarine maintenance facility in Canada, creating jobs for Canadians — an important condition the Liberal government has repeatedly underlined.
Burkhard, who praised the cost savings for Germany and Norway in terms of supply and maintenance, said if Canada were to join the program it’s possible the first Canadian boat could arrive in the 2032-33 timeframe.
Slipping into the production line at this point would likely involve redesignating one of the submarines already earmarked for either Germany or Norway.
Poland’s Donald Tusk won’t send peacekeepers to Ukraine but will provide logistical support
German, Norwegian officials urge Canada to join ‘familiar family’ in buying new submarines
Ottawa asks defence contractors to make pitches for new submarine fleet
“I think there are opportunities to debate if one of those is maybe the first Canadian one,” Burkhard said.
Although, he said, much depends on the Canadian government and how swiftly it moves.
Carney has suggested in the past that the government would like to have a decision on the submarine project by 2027.
The Type 212CD is a big boat. It is 73 metres in length, 2,800 tonnes when submerged and has four torpedo tubes.
Source: cbc
