Prime Minister Mark Carney has selected the German submarine manufacturer ThyssenKrupp Marine Systems (TKMS) as the preferred bidder for Canada’s next submarine fleet, a decision he confirmed at a Canadian Armed Forces base in Halifax.

The choice follows a close competition between TKMS and South Korea’s Hanwha. Carney described the procurement as “the largest in Canadian history,” adding that it is expected to deliver major economic impact across Canada. He said the federal government has already booked an estimated cost for up to 12 submarines in the budget.

Carney said the exact number of boats and the total price tag will be determined through negotiations between Canada and TKMS, indicating additional details remain to be set as talks continue.