The CEO of ThyssenKrupp Marine Systems (TKMS), the German company set to construct Canada’s new submarines, is advocating for enhanced collaboration among European shipbuilders, a move that could impact Canada as it contemplates incorporating corvettes into its navy. Oliver Burkhard emphasized TKMS’s recent collaboration agreement with Navantia S.A., a Spanish government-owned company, to explore joint naval projects, potentially including the production of TKMS submarine designs at Navantia’s shipyards in Spain. Burkhard stressed the importance of shipbuilder cooperation, citing the increasing demand for warship construction globally.
According to Burkhard, the market trend indicates a shift from time-rich to cash-rich shipbuilders, reflecting a rising demand for warship production. A report from Imarc forecasts a more than five percent growth in demand for warships over the next decade. In addition to submarines, the Canadian navy has initiated the construction of River-Class destroyers and suggested a military necessity for smaller, cost-effective, ice-capable corvettes. Irving Shipbuilding in Halifax is building the destroyers under the National Shipbuilding Program, while Germany will handle the construction of the 12 planned submarines due to Canada lacking modern submarine-building expertise.
Ahead of his visit to Ottawa, Burkhard discussed meeting with companies collaborating with TKMS on Canada’s submarine program. The Carney government recently selected TKMS as the preferred supplier for the navy’s submarines and aims to finalize the contract by the end of 2027. Burkhard mentioned that there are no plans to transfer any Canadian submarine work to Navantia.
Regarding the MEKO A-100 corvette design, Burkhard revealed discussions about potentially supplying the design to a Canadian shipyard to enhance Canada’s defense-industrial base. While this concept was not part of the submarine bid, Burkhard confirmed its consideration. He indicated a willingness to explore exporting the MEKO A-100 package for construction in Canada, emphasizing the possibility of collaboration with local partners.
The Canadian navy identified the need for corvettes last year and has been assessing the role and capabilities of such warships. University of Calgary defense expert Rob Huebert stressed the importance of addressing military necessity in defense procurement, supporting the navy’s need for corvettes and rapid rearmament efforts. Huebert welcomed closer cooperation among European shipyards, particularly in submarine construction, citing the need for expanded ship capacity and the historical example of Airbus’s formation.
Burkhard acknowledged the complexity of establishing a maritime Airbus equivalent but suggested that industry leadership could drive such a venture. He highlighted the industry’s potential to spearhead collaborative efforts akin to Airbus in the 1970s. The necessity for enhanced partnerships among European defense companies was underscored by a study from the Center for Strategic and International Studies (CSIS) three years ago, which emphasized the increasing defense spending in Europe alongside reduced cooperation, framing it as a persistent challenge.