Thyssenkrupp to invest €250m in shipbuilding division

German industrial conglomerate thyssenkrupp has announced plans to invest €250-million in its Marine Systems division, which builds warships and submarines.

Thyssenkrupp Marine Systems (TKMS) said in a press release that the investment will be made by 2023, citing good order intake. The group will also employ an additional 500 people by the end of 2020, it said.

Dr. Rolf Wirtz, TKMS CEO, said: "Our ambition is to be Europe's most modern naval company. By making major investments, we are preparing our operations for the future."

"This comprehensive modernisation program will strengthen the importance of our company as one of the most important employers in the region. Our recent successes show that there is strong demand for our products and services. We want to further strengthen this position," he added.

The group has pointed to several recent large orders including one from "an African customer" for four frigates, and a commission from Brazil for the production of four corvettes.

It also mentioned the completion of the third of four submarines for Egypt, the first of four corvettes for the Israeli Navy, and the commissioning of the largest conventional submarine ever built in Germany for Singapore.

TKMS is also in charge of building Germany's most modern naval vessels, the F125 class frigates. The "Baden-Württemberg" (pictured) was commissioned by the German Navy in June 2019. 

Daniel Günther, Minister-President of the German state of Schleswig-Holstein, where the company is based, said of the investment: "The shipbuilding and shipbuilding supply industry is the heart of the maritime economy in Schleswig-Holstein. The planned investments in Kiel demonstrate the future viability of the maritime industry. They are also a strong signal for the workforce and for the region. As the state government, we expressly welcome this."

The investment comes just a few days after the thyssenkrupp announced a similar sized investment in a new hot-dip coating facility at its steel division, Steel Europe.

The TKMS press release said that the company and its partners intended to "create the European NATO standard of the future in the field of conventional submarines." 

TKMS currently produces around 70% of NATO's conventional submarine fleet.

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