TKMS pushes to outbid South Korea's Hanwha in $12b Canada submarine race

TKMS is the world's largest maker of non-nuclear submarines and accounts for around 70 per cent of NATO's conventional fleet. Burkhard said TKMS was asking possible partners about foreseeable investment decisions in Canada and whether to include them in so-called offset obligations, or mandatory financial commitments, which are made over 30 years.

"Of course that also includes the defence sector," he said. Canada, which has the longest coastline in the world, has said plans to buy new submarines were aimed at maximising economic benefits as part of its defence strategy.

Burkhard, who will make his next trip to Canada in March for more talks, said Germany's economy and defence ministries as well as the Chancellery were also part of the discussions, adding he expected Canada to make a decision in 2026.