Canada announced on Monday its intention to acquire up to 12 submarines from Germany's Thyssenkrupp Marine Systems (TKMS) to replace its aging fleet, marking the largest defense procurement in the country's history.

Prime Minister Mark Carney, speaking before a planned trip to Turkey for a NATO leaders summit, stated: "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."

"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, without disclosing the deal's value.

TKMS, majority-owned by German conglomerate Thyssenkrupp, submitted a joint bid with Norway, beating South Korea's Hanwha Ocean after months of fierce competition. Both Germany and Norway are NATO members, as is Canada.

Canada said the contract will be finalized by the end of next year at the latest, with the first four submarines expected by 2034. TKMS's CEO expressed hope to finalize the contract by the end of this year.

Canada currently operates four submarines. Local media estimates the contract at 20-30 billion Canadian dollars ($14-21 billion) for the submarines themselves, and up to 40-50 billion Canadian dollars ($28-35 billion) for operations, maintenance, and upgrades.

Canada, like other NATO allies, has faced pressure from the US regime under President Donald Trump to increase defense spending. It has now met NATO's target of 2% of GDP on defense earlier than planned. NATO countries have agreed to raise spending to 5% of GDP on defense and security-related investments by 2035. TKMS shares closed up 11% on the day.

Source: www.aljazeera.com