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“German CEO Pushes for European Shipbuilder Collaboration”

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The chief executive officer of ThyssenKrupp Marine Systems (TKMS), the German company set to construct Canada’s new submarines, is advocating for enhanced collaboration among European shipbuilders, a move that could impact Canada as it contemplates incorporating corvettes into its naval fleet. Oliver Burkhard, in an interview with CBC News, emphasized the recent cooperation agreement between TKMS and Spain’s Navantia S.A., with discussions on jointly working on naval projects, potentially including the production of TKMS submarine designs at Navantia’s Spanish shipyards.

Burkhard stressed the necessity for shipbuilders to collaborate in response to the rising demand for warship construction. According to a report by Imarc, this demand is expected to increase by over five percent in the next decade. In addition to the submarine program, the Canadian navy has initiated the construction of River-Class destroyers and expressed the need for smaller, cost-effective, ice-capable corvettes. The destroyers are being built in Halifax by Irving Shipbuilding under the National Shipbuilding Program, while the submarines will be constructed in Germany due to Canada’s lack of modern submarine building expertise.

Burkhard’s remarks come ahead of his visit to Ottawa to meet with companies involved in supplying Canada’s submarine program. TKMS was recently named as the preferred supplier for the navy’s submarines by the Canadian government and aims to finalize the contract by the end of 2027. Burkhard anticipates a swift conclusion to the deal due to the government’s expedited process.

Furthermore, discussions have surfaced regarding potentially supplying the MEKO A-100 corvette design to a Canadian shipyard, although this idea was not included in the submarine bid. While Burkhard confirmed the consideration of this concept, there have been no formal proposals to Canadian officials regarding exporting the MEKO A-100 package for construction in Canada.

The Canadian navy identified the need for corvettes last year, with Vice-Admiral Angus Topshee advocating for smaller warships to defend the extensive Canadian coastline. Rob Huebert, a defense expert, emphasized the importance of meeting military requirements over economic benefits, supporting the navy’s need for corvettes. He also endorsed the idea of closer cooperation among European shipyards, particularly in submarine construction, citing the need for increased ship production capacity.

Burkhard drew parallels between the current shipbuilding market conditions and the 1960s aerospace industry, suggesting that industry collaboration akin to the creation of Airbus could address capacity challenges faced by various shipyards. Despite the complexities involved, Burkhard suggested that industry-led initiatives, similar to the formation of Airbus, could drive closer partnerships among European defense companies. These sentiments align with the Center for Strategic and International Studies’ previous observations on the importance of enhanced collaboration among European defense firms.

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