Ministry of Defense of Israel, Elbit Systemsand the German company ThyssenKrupp Marine Systems (TKMS) officially inaugurated a new production line designed for the production of structural components 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 area in the city of Karmiel in northern Israel, and will specialize in the production of underwater components made of polyester fiberglass – a material that is widely used in marine applications thanks to its structural strength, light weight and resistance to harsh marine conditions.
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Strategic Industrial Offset Agreement
The project is part of TKMS’ commitments after signing a large-scale contract to supply next-generation submarines and modern corvettes equipped with missile systems to Israel. As part of the agreement, the Israeli defense industry will absorb German technology and production know-how, thereby strengthening the local defense production base.
According to Elbit Systems’ announcement, Israeli experts are implementing technological solutions transferred by the German partners in order to develop local advanced production capabilities.
Decker submarines: a contract worth billions of euros
Israel has a long history of strategic cooperation with TKMS in the field of submarines. Today, the German company is building the new generation of Decker submarines, which will replace the first series of Dolphin model submarines supplied to Israel in the late 1990s.

The contract, estimated at about 3 billion euros, includes the construction of three modern submarines. Production of the first vessel of the Decker model began at the end of 2024, with delivery expected around 2031.
The new submarines will feature a unique design developed specifically to meet the operational needs of the Israeli Navy. One of the key technological features is a diesel-electric propulsion system with an air-independent propulsion system (AIP), which significantly increases the time spent underwater and the level of operational secrecy.
The industrial cooperation between Israel and Germany strengthens not only the strategic ties between the countries, but also the establishment of local industrial capabilities in the field of advanced naval construction.
Source and photos: TKMS | Elbit Systems. This content is generated with the help of artificial intelligence and reviewed by the editorial team.
