Canada named Germany’s ThyssenKrupp Marine Systems (TKMS) as the preferred supplier to begin negotiations for the Canadian Patrol Submarine Project on Tuesday, selecting the German shipbuilder over South Korea’s Hanwha Ocean for what Prime Minister Mark Carney described as the largest defense procurement in Canadian history.

The project will deliver up to 12 submarines to replace the Royal Canadian Navy’s aging Victoria-class fleet. Canada aims to conclude contract negotiations by the end of 2027 and receive the first four submarines in 2034. Ottawa also designated Hanwha Ocean as the reserve supplier should negotiations with TKMS prove unsuccessful.

The decision concludes