The CEO of ThyssenKrupp Marine Systems (TKMS), the German company in line to construct Canada’s new submarines, is advocating for increased collaboration among European shipbuilders. This initiative could potentially impact Canada, particularly as the navy contemplates the addition of corvettes to its fleet.
In an interview with CBC News, Oliver Burkhard emphasized TKMS’s recent partnership with the Spanish government-owned Navantia S.A., exploring potential joint naval projects and the production of TKMS submarine designs at Navantia’s shipyards in Spain. Burkhard stressed the importance of shipbuilder collaboration, citing the rising demand for warship construction globally.
According to Burkhard, the market is witnessing a shift where increased financial resources are now available but time constraints persist, leading to a steady demand for warship construction. A recent report by Imarc forecasts a more than five percent growth in demand over the next decade.
Apart from submarines, the Canadian navy is currently constructing its awaited River-Class destroyers and has expressed interest in acquiring smaller, cost-effective, ice-capable corvettes. The destroyers are being built in Halifax by Irving Shipbuilding under the National Shipbuilding Program. As Canada lacks modern submarine building expertise, the planned 12 submarines will be constructed in Germany.
Burkhard’s upcoming visit to Ottawa will involve meetings with companies collaborating with TKMS on Canada’s submarine program. The Carney government recently selected TKMS as the preferred submarine supplier, aiming to finalize a full contract by the end of 2027. Burkhard anticipates the contract signing to occur sooner due to the government’s expedited process.
While discussing the potential export of the MEKO A-100 corvette design to Canada, Burkhard highlighted the possibility of building the corvettes in Canada using TKMS’s design. The concept is under consideration, although no formal pitch has been made to Canadian officials.
The Canadian navy’s identified need for corvettes aligns with its strategic objectives, emphasizing the importance of military necessity in defense procurement decisions. Experts like Rob Huebert endorse the acquisition of corvettes to enhance naval capabilities, especially in light of potential future conflicts.
Huebert also acknowledges the benefits of increased collaboration among European shipyards, particularly in submarine construction. Drawing parallels to the formation of Airbus in the aerospace industry, Burkhard envisions a similar collaborative effort in the shipbuilding sector to address market challenges and capacity disparities among shipyards.
The necessity for closer cooperation among European defense companies was underscored in a study by the Center for Strategic and International Studies (CSIS) three years ago, emphasizing the need for enhanced collaboration despite increased defense spending in European countries.