Ministry of Defense of Israel, Elbit Systems and the German company ThyssenKrupp Marine Systems (TKMS) officially inaugurated a new production line intended for the production of structural elements for submarines.
The initiative is part of the offset agreement signed between both countries.
The new company operates in the Bar-Lev industrial zone in the northern Israeli city of Karmiel and will specialize in the production of underwater components made of polyester fiberglass – a material widely used in marine applications due to its structural strength, low weight and resistance to the harsh conditions of the marine environment.

Strategic offset agreement
The project implements the commitments made by TKMS when signing a large-scale contract for the supply of new generation submarines and modern corvettes equipped with missile systems for Israel. Under the agreement, the Israeli defense industry will adopt German technology and production know-how, strengthening the country’s defense industrial base.
According to information provided by Elbit Systems, Israeli specialists are implementing technological solutions provided by German partners to develop advanced local production capabilities.
Dakar-class submarines: a contract worth billions of euros
Israel has been maintaining strategic cooperation with TKMS in the submarine sector for years. Currently, the German company is building a new generation of Dakar-class ships, which will replace the first series of units Dolphin classdelivered to Israel in the late 1990s.

The contract, worth approximately EUR 3 billion, provides for the construction of three modern submarines. Production of the first Dakar-class unit began in late 2024, with delivery scheduled for approximately 2031.
The new ships will feature a unique design, developed specifically to meet the operational requirements of the Israeli Navy. One of the key technological solutions will be a diesel-electric drive with an air-independent system (AIP), which significantly increases submerged autonomy and the level of operational discretion.
Industrial cooperation between Israel and Germany strengthens not only bilateral strategic relations, but also the consolidation of local industrial capabilities in the advanced shipbuilding sector.
Source and photos: TKMS | Elbit Systems. The content was prepared with the support of AI and verified by the editorial team.
