Israel Ministry of Defense Elbit Systemsand Germany’s ThyssenKrupp Marine Systems (TKMS) has officially launched a new production line for the production of submarine structural elements.
This project is part of the industrial offset agreement concluded between the two countries.
The new company will be located in the Bar-Lev Industrial Complex in Karmiel, northern Israel, and will specialize in the production of underwater parts made of polyester fiberglass. This material is widely used in naval applications due to its structural strength, light weight, and durability in harsh marine environments.

Strategic Industry Offset Agreements
This project is part of TKMS’ obligations under a large-scale contract to supply next-generation submarines and the latest missile-equipped patrol ships to Israel. Under the agreement, Israel’s defense industry will receive German technology and production know-how to strengthen its defense industrial base.
According to information released by Elbit Systems, Israeli experts are building advanced local production capabilities by applying technological solutions transferred from German partners.
Dakar-class submarines: multibillion-euro contract
Israel has maintained a long-standing strategic partnership with TKMS in the submarine field. German companies are currently using the technology introduced by Israel in the late 1990s. Dolphin class We are building the Dakar-type next-generation submarine to replace the first batch.

The contract, valued at approximately 3 billion euros, includes the construction of three state-of-the-art submarines. Production of the first Dakar-class ship began in late 2024, with delivery scheduled for around 2031.
The new submarine will have a proprietary design specifically designed to meet the operational needs of the Israeli Navy. One of the key technical features is the diesel-electric propulsion system with air-independent propulsion (AIP), which significantly improves submersible endurance and operational stealth.
Industrial cooperation between Israel and Germany not only strengthens the strategic relationship between the two countries, but also contributes to consolidating Israel’s local industrial capabilities in the highly technological naval industry.
Source and image: TKMS | Elbit Systems. This content was created with the help of AI and reviewed by our editorial team.
