After meeting NATO’s 2% of GDP defense-spending target ahead of schedule, Canada chose Germany’s Thyssenkrupp Marine Systems as preferred supplier for a submarine program estimated by The Korea Times at up to $100 billion over three decades.
Canada is accelerating a military buildup after long being seen as a weak link in NATO (North Atlantic Treaty Organization). Over the past year, it met the alliance’s defense-spending target of 2% of gross domestic product ahead of schedule, lifted Canadian Armed Forces recruitment to a 30-year high, and began buying billions of dollars in new equipment. The latest step came Monday, when Prime Minister Mark Carney said Canada had selected Germany’s Thyssenkrupp Marine Systems, or TKMS, as preferred supplier for up to 12 new submarines to modernize its aging fleet. The Korea Times estimated the program could be worth up to $100 billion over three decades. The decision sent shares of South Korea’s Hanwha Ocean down about 23% Tuesday after it lost the bid.