The race for one of Canada’s largest-ever defence procurements is taking an unusual turn. While German shipbuilder ThyssenKrupp Marine Systems (TKMS) has leaned on NATO credentials and quiet diplomacy, its South Korean rival Hanwha Ocean has flooded Canadian airwaves with television and streaming advertisements. The media push extends to airport billboards and even inland cities such as Calgary, signalling an aggressive public-relations assault as Ottawa prepares to pick a winner.
The bidding war has jolted TKMS shares. After sliding to €73.50 on Tuesday and losing roughly 11% over the prior 30 days, the stock surged nearly 8% on Wednesday to €79.30. That move pushed the equity back above its 50-day moving average of around €79.15, a level it had breached only days earlier. Year-to-date, the shares now show a gain of approximately 14.5%, though they remain almost 23% below the 52-week high of €102.90.
Canada wants up to twelve submarines capable of under-ice operations to patrol three oceans. The government has narrowed the field to TKMS and Hanwha Ocean, and Stephen Fuhr, the parliamentary secretary overseeing the project, said in late May that a decision should come by the end of June. Some sources suggest the announcement could slip into early July, but the window is closing fast.
TKMS has sweetened its proposal with a significant concession. The company has offered to deliver four boats by 2036, with handovers scheduled for 2032, 2033, 2035 and 2036. To meet that timetable, both Germany and Norway would have to accept delays in their own submarine orders — a gesture underscoring how seriously Kiel views the Canadian prize, valued at several tens of billions of dollars.
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Hanwha is countering with promises of rapid delivery and local economic spin-offs. Its advertising blitz is rare in the normally discreet defence sector and appears designed to build public pressure for a contract that favours speed and domestic jobs. TKMS, by contrast, is emphasising interoperability with NATO allies, noting that its submarines already serve alongside German and Norwegian fleets.
The German builder is also strengthening its local footprint. In January, TKMS struck a partnership with Seaspan Shipyards, giving the Canadian yard responsibility for maintenance and sustainment of any submarines purchased. That move aims to address sovereignty concerns and create a long-term industrial base.
No contract has been awarded yet. Ottawa has qualified both bidders and held detailed talks, but a final green light remains pending. If TKMS wins, its order book will be packed for years. If Hanwha prevails, Wednesday’s share-price spike could quickly evaporate. For now, the market is pricing in the tension — and the advertising war is only getting louder.
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