TKMS and Marmen sign strategic Teaming Agreement to support production of 212CD submarine segments in Canada
Press Release
KIEL, Germany and TROIS-RIVIÈRES, QC, Dec. 18, 2025 /CNW/ - TKMS and Marmen, one of North America's most respected high-precision manufacturing companies, have signed a strategic Teaming Agreement to collaborate on the production of major submarine workshare for the Royal Canadian Navy.
Under this agreement, Marmen will manufacture selected submarine sections and complex assemblies for the 212CD submarine platform, bringing its expertise in complex, high-precision fabrication to one of the most advanced conventional submarines in service. This Memorandum of Understanding (MoU) highlights the intend of TKMS to include the Canadian defense industry in its industrial supply chain of submarine production by leveraging Marmen manufacturing expertise.
Thomas Keupp, Chief Sales Officer at TKMS, emphasizes: "Through this strategic partnership with Marmen, we are expanding our industrial presence in Canada and harnessing the strengths of Québec's manufacturing ecosystem. Marmen's innovative approach will play a key role in supporting the 212CD program and the needs of the Royal Canadian Navy."
The inclusion of Marmen will create increased production capacity for TKMS and will be part of the knowledge transfer to Canada that will enable sovereign in service support for the life of the program. The economic impact starts with the contract signing to build and create equipment and manufacturing capacity that will support production and create hundreds of new jobs.
Patrick Pellerin, President of Marmen, is delighted about the collaboration: "TKMS has demonstrated an unwavering commitment and visionary leadership in advancing Canada's industrial capabilities. Marmen is proud to partner with TKMS on a program of such national significance. Our teams in Trois-Rivières and across Québec bring deep expertise in complex fabrication, and we are excited to contribute our capabilities to the next generation of submarine technology for Canada."
The collaboration underscores the strength of Québec's manufacturing sector. With Trois-Rivières recognized for its industrial excellence, advanced capabilities, and highly skilled workforce, the region continues to distinguish itself as a strategic contributor within Canada's defense and maritime supply chain.
Marmen is a highly respected manufacturing partner for major OEMs with indepth experience in high-precision machining, manufacturing, assembly, surface treatment, design, and engineering. With more than 900 employees and six manufacturing facilities in Canada with a production capacity of close to 1,000,000 square feet, the company undertakes strategic projects in various industries, including defense, aerospace, wind power, hydroelectric power, aviation, and others.
About us
TKMS is one of the world's leading naval companies with over 9,100 employees (including temporary workers) at three shipyards in Kiel, Wismar and Itajaí (Brazil) with locations worldwide. The company is active as a systems supplier for submarines and naval surface vessels as well as for maritime electronics and security technologies. Around 3,300 people work at the Kiel site, making it the largest shipyard location in Germany. 185 years of history and the constant striving for improvement allow the company to set new standards time and time again. TKMS offers its customers worldwide tailored solutions to meet the highly complex challenges of a changing world. The driving forces behind this innovative energy are the company's employees, who shape the future of TKMS with passion and commitment every day.
More information at: www.tkmsgroup.com
Noah Note: And there it is. I knew TKMS had a partmership they were announcing soon with Marmen, although I wasnt at liberty to speak. We finally have a partnership to put on the TKMS board, and it’s a major one.
This choice is actually something that had been pushed by the Federal government. I believe it was either Champagne or Joly who pushed for, at least, module production to take place in Canada. Marmen was one of the companies they were specifically pushing.
Of course this is a big move for TKMS. Domestic productions of even parts of the hull is a major inclusion to their technical package. It's also exactly the kond of thing the Federals wanna see. This isnt gonna be domestic production, however it is a step behind.
Of course how exactly this will work and what this will look like has yet to be seen. This is an MOU afterall. You can only put so much into them. However from a selling standpoint this is going to turn the economic-heads like a moth to a flame.
Of course compared to the KSS-III, who uses HY-100 steel not to dissimilar to ehat you would typically find in Industry, the inner hull of thr 212CD uses a non-magnetic austenitic steel, likely a derivative of the 1.3964 grade used in the Type 212A. You might know it as Nitronic 50
This kind of steel is unique to Canadian industry, and not something we would be readily able to produce domestically with existing capacity. Even if we could make segments of the hull, there is no ready supplier in Canada who could take on such an endeavour immediately.
There are shops that I know that could and sometimes do forging related to it, however these are in small, limited quanities and I have no indication that they could produce at the sizes and scale needed. Canada also has no producer of raw 1.3964 grade steel.
The closest, I believe, is down south where Cleveland-Cliffs produces some. So these is a North American supply but not a Canadian one in the immediate. Im going to be interested in seeing how this supply chain is built out.
It isnt so simple as someone like Algoma creating a line for such a thing either. There is a lack of equipment needed to make it at the scale desired. Stainless steel, especially nitrogen-infused steel like 1.3964 grade requires specialized equipment compared go the traditional carbon steel we make here.
Thats not me dismissing. I'm very curious to see how they would execute this. It's a new capacity to Canada, one out steel industry is not immediately set for. You'll keep hearing more about this kind of stuff. This won't be the last steel/hull rrlated announcement we hear. You gotta wait for that though.
My thought for the steel is, how much would it cost, and is there another use for the steel?
Like, this is gonna be a $60-100 Billion dollar project, an investment of $150-250 million to set up the steel production here might not be a bad investment if it also grows our domestic steel capacity that can supply other things; provided there’s a buyer for such things beyond submarines.
We already make a lot of steel, I don’t think it would hurt to add another steel product to the national portfolio.
I'm curious to see what Hanwha does in response to this announcement. They likely are not going to take this sitting down. Our industry only will benefit from this intense competition.