Ottawa selected Germany's TKMS as the preferred supplier, beating a rival offer from South Korea, ahead of the NATO summit

Canada has selected Germany’s ThyssenKrupp Marine Systems (TKMS) as the preferred supplier for a fleet of up to 12 submarines, beating a rival offer from South Korea, in what Prime Minister Mark Carney said would be the country’s largest-ever procurement.

“I’m pleased to announce that Canada has selected TKMS as the preferred supplier for Canada’s patrol submarine project,” Carney said in Halifax on Monday.

The announcement comes on the eve of the NATO summit in Ankara, Turkey, where allies are expected to present plans to meet a target of spending 3.5% of GDP on defence by 2035.

TKMS developed the Type 212CD diesel-electric submarine together with Norway. The design, which has been ordered by Germany and Norway, went up against a bid from South Korea’s Hanwha Ocean.