The Ministry of Defense of Israel, Elbit Systems and the German ThyssenKrupp Marine Systems (TKMS) have officially inaugurated a new production line dedicated to the manufacturing of structural elements for submarines.
The initiative is part of an industrial compensation agreement signed 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 naval applications for its structural strength, lightness and durability in harsh maritime environments.

Strategic industrial compensation agreement
The project is part of the obligations undertaken by TKMS with the signing of a large-scale contract for the supply of new generation submarines and modern missile-equipped corvettes to Israel. As part of the deal, the Israeli defense industry will absorb German technology and manufacturing know-how, strengthening its defense industrial base.
According to information released by Elbit Systems, Israeli specialists are implementing technological solutions transferred from German partners to develop advanced local production capabilities.
Dakar class submarines: billion dollar contract
Israel maintains a long-standing 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 classe Dolphin received from Israel in the late 1990s.

The contract, valued at around 3 billion euros, involves the construction of three modern submarines. Production of the first unit of the Dakar class began at 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 main distinguishing technological elements will be the diesel-electric propulsion system with air-independent propulsion (AIP), which significantly increases submerged autonomy and operational discretion.
Industrial cooperation between Israel and Germany strengthens not only bilateral strategic ties, but also the consolidation of local industrial capabilities in the highly complex naval sector.
Source and images: TKMS | Elbit Systems. This content was created with the help of AI and reviewed by the editorial team.
