“German CEO Advocates European Shipbuilding Collaboration”

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The CEO of ThyssenKrupp Marine Systems (TKMS), the German company poised to construct Canada’s new submarines, is advocating for enhanced collaboration among European shipbuilders, a move that could impact Canada’s navy as it looks into introducing corvettes to its fleet. Oliver Burkhard emphasized his company’s recent partnership with the Spanish government-owned Navantia S.A., aiming to explore joint naval projects, potentially manufacturing TKMS submarine designs at Navantia’s Spanish shipyards.

Burkhard stressed the importance of shipbuilders working together due to the rising demand for warship construction, as indicated by a recent report projecting over a five percent increase in demand over the next decade. Apart from submarines, the Canadian navy is progressing with the construction of River-Class destroyers and has expressed interest in acquiring smaller, cost-effective, ice-capable corvettes to address military requirements.

The construction of destroyers is underway at Irving Shipbuilding in Halifax under the National Shipbuilding Program, which is nearing completion of the Arctic and Offshore Patrol Ships. Given Canada’s lack of modern submarine building capabilities, the 12 planned submarines will be constructed in Germany. Burkhard, ahead of his visit to Ottawa to meet with TKMS partners for Canada’s submarine program, anticipates a swift contract with the German shipbuilder following the Carney government’s selection of TKMS as the preferred supplier.

While discussing the potential export of TKMS’s MEKO A-100 corvette design to Canada for local construction, Burkhard indicated openness to the idea, emphasizing the possibility of building the corvettes in Canada based on TKMS design with local partners. The Canadian navy identified the need for corvettes last year, engaging in an analysis of various options to fulfill the vessel’s roles and required capabilities.

Rob Huebert, a defense expert, supported the necessity of corvettes for the navy, highlighting the importance of military readiness over economic benefits. He emphasized the urgency for ship construction readiness and replacement capabilities in the event of conflicts. Burkhard and Huebert both acknowledged the potential for increased collaboration among European shipyards, drawing parallels to the formation of Airbus in the 1960s to address market conditions in the shipbuilding industry.

While recognizing the complexity of establishing a maritime equivalent of Airbus, Burkhard suggested that industry leadership could drive such initiatives, independent of political considerations. The need for closer partnerships among European defense companies was underscored by a study conducted by the Center for Strategic and International Studies (CSIS) three years ago, emphasizing the growing defense spending in Europe alongside declining cooperation levels among countries.

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