Israeli Ministry of Defense, Elbit Systems and the German ThyssenKrupp Marine Systems (TKMS) has officially inaugurated a new production line dedicated to the production of structural elements for submarines.
The initiative is part of an industrial counter-purchase agreement entered into between the two countries.
The new company operates in the Bar-Lev industrial zone in the city of Karmiel in northern Israel and will specialize in the production of underwater components made of polyester fiberglass — a material widely used in maritime applications due to its structural strength, light weight and durability in demanding marine environments.

Strategic industrial counter-purchase agreement
The project is part of the commitments TKMS undertook when signing a major contract for the supply of next-generation submarines and modern missile-equipped corvettes to Israel. As part of the agreement, the Israeli defense industry will absorb German technology and manufacturing know-how, thereby strengthening its industrial defense base.
According to information published by Elbit Systems, Israeli specialists are implementing technological solutions transferred from their German partners to develop advanced local production capacities.
Dakar class: contract worth billions of euros
Israel has a long-standing strategic cooperative relationship with TKMS in the submarine sector. The German company is currently building the new generation of submarines of the Dakar type, which will replace the first series of Dolphin classes delivered to Israel in the late 1990s.

The contract, valued at approximately 3 billion euros, includes the construction of three modern submarines. Production of the first Dakar-class vessel began towards the end of 2024, with delivery expected around 2031.
The new submarines will have a unique design, developed specifically to meet the operational needs of the Israeli Navy. One of the most important technological differences will be the diesel-electric propulsion system with Air Independent Propulsion (AIP), which significantly increases underwater endurance and operational discretion.
The industrial cooperation between Israel and Germany not only strengthens the bilateral strategic ties, but also the consolidation of local industrial capacities within the high-tech maritime sector.
Source and images: TKMS | Elbit Systems. This content was created with the help of AI and reviewed by the editors.
