Canada to decide between German, South Korean submarine bids on Monday

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TORONTO (AP) — Canada is expected Monday to choose between German and South Korean bids to build a fleet of 12 submarines in one of its biggest-ever military procurements.

Germany’s ThyssenKrupp Marine Systems and South Korea’s Hanwha Ocean are competing for the contract to build 12 conventionally powered submarines worth tens of billions of dollars.

The announcement is expected before Prime Minister Mark Carney departs to the NATO summit in Turkey as NATO allies boost defense spending.

Carney is scheduled to tour a Canadian Armed Forces base in the Atlantic-coast province of Nova Scotia on Monday before announcing “new measures to make Canada more secure, resilient, and prosperous."

A spokesperson for Carney declined to confirm the submarine announcement will be made on Monday. But Carney said in May a decision would be announced within weeks.

Canada’s current fleet of four Victoria class submarines are barely in operation.

German-Norwegian consortium ThyssenKrupp Marine Systems has pitched its submarines as strengthening NATO, noting it has supplied much of the alliance’s conventional submarine fleet.

South Korea’s Hanwha Ocean has mounted an aggressive advertising campaign and highlighted economic benefits for Canada.

Last month, Hanwha showcased its KSS-III diesel-electric submarine in British Columbia after the vessel completed the South Korean navy’s first-ever trans-Pacific crossing.

Both companies say their proposals would generate jobs and investment in Canada.

Carney’s government has pledged to meet NATO’s higher defense spending targets, committing to spend 5% of Canada’s gross domestic product on defense by 2035 after reaching the alliance’s previous 2% benchmark this year.