The CEO of ThyssenKrupp Marine Systems (TKMS), the German company slated to construct Canada’s new submarines, is advocating for increased collaboration among European shipbuilders. This initiative could have implications in Canada as the navy evaluates the addition of corvettes to its fleet. Oliver Burkhard emphasized the recent partnership between TKMS and the Spanish government-owned Navantia S.A., exploring potential joint naval projects, including the production of TKMS submarine designs at Navantia’s Spanish shipyards.
Burkhard highlighted the rising demand for warship construction, noting the shift from having time but no money to having money but no time in the market. A report by Imarc forecasts a more than five percent growth in demand for warships over the next decade.
In addition to the submarine project, the Canadian navy is progressing with the construction of River-Class destroyers and has indicated the necessity for smaller, cost-effective, ice-capable corvettes. The destroyers are being built by Irving Shipbuilding in Halifax, while the submarines, due to Canada’s lack of modern submarine building expertise, will be built in Germany.
Ahead of his visit to Ottawa, Burkhard expressed optimism about finalizing the submarine contract with the Canadian government sooner than expected. He also discussed the potential for TKMS to export its MEKO A-100 corvette design to be built in Canada.
The Canadian navy identified the need for corvettes, with Vice-Admiral Angus Topshee emphasizing the importance of defending the extensive Canadian coastline. Defence expert Rob Huebert emphasized the military necessity for corvettes and welcomed Burkhard’s acknowledgment of the need for rapid rearmament.
Huebert commended the closer cooperation among European shipyards, particularly in submarine construction. He likened the current market conditions in shipbuilding to the 1960s when European aerospace companies collaborated to form Airbus in response to competition from U.S. defense contractors.
While recognizing the complexity of establishing a maritime equivalent of Airbus, Burkhard suggested that the industry could take the lead in fostering partnerships among European defense companies. He highlighted the need for enhanced collaboration, as emphasized in a study by the Center for Strategic and International Studies (CSIS) three years ago.
Overall, Burkhard’s push for increased cooperation among European shipbuilders could have significant implications for the naval industry, both in Europe and Canada.