The geopolitical tensions surrounding Greenland could unexpectedly benefit a German defence contractor vying for a multi-billion euro contract to replace Canada's aging submarine fleet, according to a senior company executive.
A Strategic Shift in the Arctic
Paul Glaser, Chief Financial Officer of Thyssenkrupp Marine Systems (TKMS AG & Co. KGaA), suggested that the recent crisis could make a stronger partnership with Europe more appealing to Ottawa. The situation stems from U.S. President Donald Trump's threats to acquire Greenland from NATO ally Denmark, which has unsettled European capitals. For Canada, another NATO member, this may highlight the value of deepening defence and strategic relationships within the alliance, particularly along its northern flank.
"As things stand today, I wouldn't go so far as to say that it's the decisive factor for us," Glaser stated regarding the Greenland escalations during a Monday event. "But I wouldn't describe it as harmful either." He made these comments on the sidelines of a celebration marking TKMS's entry into Germany's MDAX mid-cap stock index.
The Final Two Contenders
TKMS is one of two finalists remaining in the high-stakes tender to provide Canada with new submarines. The other contender is South Korea's Hanwha Ocean Co Ltd. The German firm is promoting its Type 212CD submarine, a joint design developed with Norway. Glaser emphasized that this vessel presents an opportunity for Canada to forge closer military ties with European NATO partners at a sensitive geopolitical moment.
He also argued that TKMS holds a technical advantage for Canadian needs, noting its submarines and frigates are specifically engineered for Arctic warfare. The designs focus on enabling the platforms to operate effectively and cover vast distances in the challenging northern environment.
Global Expansion and Market Confidence
The Canadian competition is not TKMS's only major international prospect. The company is also nearing finalization of a substantial US$8 billion deal with Indian state-owned Mazagon Dock Shipbuilders Ltd. (MDL) to collaboratively build submarines for the Indian Navy. "We have a partnership with MDL, which will also build the submarines, that works very well," Glaser confirmed. "We were also selected by the procurement authorities. This means that once submarines come, they will come to TKMS."
TKMS's market position has been strengthened recently. The company was spun out of its parent, Thyssenkrupp AG, and conducted an initial public offering on the Frankfurt stock exchange in October 2025. Its ascent was rapid; it gained entry into the MDAX on December 22, 2025, after just 46 trading days, a point highlighted by Deutsche Börse AG board member Thomas Book at Monday's event.
The outcome of the Canadian submarine procurement will have lasting implications for the nation's naval capabilities and its strategic partnerships. As Ottawa weighs its decision, the evolving dynamics of Arctic security and transatlantic relations appear to be becoming increasingly relevant factors in the multi-billion euro evaluation.
