Company lobbying Ottawa to secure submarine deal

As the competition for Canada's lucrative submarine project winds to a close, it looks like Germany might be the candidate to run away with it after a Norwegian defence company is using its country's Arctic link to persuade Canada.

“We like to lose to Canada in ice hockey. It's one of the countries we like to lose to. The cultural fit, being Arctic-centric nations, being NATO members — there's so much alignment.”

-Kjetil Myhra, executive vice president of defence systems at Kongsberg

Myhra told media outlets that his firm is already an expert in creating submarine infrastructure in Arctic conditions, something this project would certainly entail.

Kongsberg is supporting Germany's ThyssenKrupp Marine Systems, or TKMS, in the bid. If successful, they would be rewarded with the multi-billion dollar contract to build a fleet of submarines designed to patrol Canada's Arctic coast.

An international effort

Jacques Esser, investor relations manager at ThyssenKrupp's naval unit ThyssenKrupp Marine Systems (TKMS), walks past his company's logo prior to TKMS' initial public offer at the stock exchange in Frankfurt am Main, western Germany, on October 20, 2025. (Photo by Kirill KUDRYAVTSEV / AFP via Getty Images)

What makes this particular bid interesting is that it's a merger of Germany's and Norway's respective governments. It appears that TKMS, backed by Kongsberg, are presenting itself as part of a group of nations and private companies working toward the same goal.

With TKMS bringing in a company whose expertise lies in building advanced submarine technology, Germany is potentially suggesting a linked international submarine fleet.

With Russia continually threatening northern waters, it's an offer the Canadian government may be inclined to take.

Kongsberg, which was already contracted by TKMS, will be lending the TKMS 212CD subs its combat system, dubbed ORCCA, which will operate in the Norwegian and German subs. It will also operate in Canadian subs if TKMS wins the contract.

In need of a marine fleet

The H.M.C.S. Victoria, one of Canada's recently acquired diesel and electric submarines, tied up at the dock at the Canadian Navy base Esquimalt. The Victoria is one of four submarines which, bought used from the British government, were grounded when one member of the submarine crew died on board the HMCS Chicoutimi during a fire that crippled the submarine while returning from England. | Location: Esquimalt, British Columbia, Canada. (Photo by Christopher Morris/Corbis via Getty Images)

Canada is currently in a race to replace its aged fleet of submarines: the Victoria class. The Victoria subs are scheduled for retirement in 2035, but three of the four ships have already been retired.

The Canadian government is looking to purchase a fleet of 12 submarines from foreign suppliers. Only TKMS and South Korea's Hanwha Oceans remain in contention for the contract.

Kongsberg executives have been meeting in Canada regularly over the last month, trying to push their case. Part of their argument is resume: Konsberg has been receiving Canadian contracts for decades and exporting defence tech into international markets.

The company is currently under contract for the Royal Navy, outfitting naval River-class destroyers with key operating components and naval strike missiles.

LONDON, ENGLAND – SEPTEMBER 10: The Kongsberg company logo is displayed during the Security Equipment International (DSEI) at London Excel on September 10, 2025 in London, England. The Defence and Security Equipment International (DSEI) hosts defence equipment manufacturers from around the world at a 4-day exhibition in London. Anti-war protesters gather outside in the hope of preventing the event from going ahead. (Photo by John Keeble/Getty Images)

Kongsberg is also looking to purchase a factory in Newfoundland. Kjetil Myhra told the media that “The message that we're also carrying here to Canada is, make sure that you build long-term relationships that build sustainable jobs for Canada and not just something that comes in for a particular program, and when the program ends, the jobs goes away,”

Ottawa privately sent bid instructions to the two sub makers on Nov. 14. The Canadian government has refused to release those instructions, citing concerns for national security.

“Given the sensitive nature of procuring an advanced submarine capability, the bid instructions will not be made public, given the national security and sovereignty context,”

-Nicole Allen, Public Services and Procurement Canada spokesperson.

Reportedly, the instructions said the government's scoring of the bids will place most of the emphasis on the boats' long-term maintenance.