The Israeli Ministry of Defense, Elbit Systems and Germany’s ThyssenKrupp Marine Systems (TKMS) have officially inaugurated a new production line dedicated to manufacturing structural elements for submarines.
The initiative is part of an industrial offset agreement signed between the two countries.
The new company operates in the Bar-Lev industrial zone, in the city of Karmiel, northern Israel, and will specialize in producing underwater components made of polyester fiberglass — a material widely used in naval applications for its structural strength, light weight, and durability in harsh maritime environments.
Strategic Industrial Offset Agreement
The project is part of the obligations assumed by TKMS upon signing a large-scale contract to supply next-generation submarines and modern missile-equipped corvettes to Israel. As part of the agreement, Israel’s defense industry will absorb German technology and production expertise, strengthening its industrial defense base.
According to information released by Elbit Systems, Israeli specialists are implementing technological solutions transferred by their German partners to develop advanced local production capabilities.
Dakar-Class Submarines: Multibillion-Euro Contract
Israel has a long-standing record of strategic cooperation with TKMS in the submarine sector. The German company is currently building the new generation of Dakar-type submarines, which will replace the first batch of the Dolphin class received by Israel in the late 1990s.
The contract, valued at approximately €3 billion, provides for the construction of three modern submarines. Production of the first Dakar-class vessel began in late 2024, with delivery expected around 2031.
The new submarines will feature a unique design developed specifically to meet the operational requirements of the Israeli Navy. One of the main technological differentiators will be the diesel-electric propulsion system with air-independent propulsion (AIP), significantly increasing submerged endurance and operational stealth.
Industrial cooperation between Israel and Germany strengthens not only bilateral strategic ties but also the consolidation of local industrial capabilities in the high-complexity naval sector.
Source and images: TKMS | Elbit Systems. This content was created with the assistance of AI and reviewed by the editorial team.
