The Israeli Ministry of Defense, Elbit Systems and the German company ThyssenKrupp Marine Systems (TKMS) have officially inaugurated a new production line for the production of structural elements for submarines.
The initiative is part of an industrial offset agreement concluded 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 harsh maritime environments.

Strategic Industrial Offset Agreement
The project is part of the commitments made by TKMS with the signing of a major contract to supply Israel with next-generation submarines and modern missile-equipped corvettes. As part of the agreement, the Israeli defense industry will adopt German technology and production know-how, thereby strengthening its defense industrial base.
According to information published by Elbit Systems, Israeli specialists are implementing technological solutions transferred from their German partners to develop advanced local production capabilities.
Dakar class: billion dollar contract
Israel has 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 is the first series of the Dolphin class which Israel received in the late 1990s.

The contract, worth around 3 billion euros, provides for the construction of three modern submarines. Production of the first Dakar-class ship began in late 2024, with delivery scheduled for around 2031.
The new submarines will receive an exclusive design specifically tailored to the operational requirements of the Israeli Navy. One of the key technological features will be the air-independent propulsion (AIP) diesel-electric propulsion system, which significantly increases underwater autonomy and operational stealth capability.
The industrial cooperation between Israel and Germany not only strengthens bilateral strategic relations, but also the consolidation of local industrial capacities in the highly complex maritime sector.
Source and images: TKMS | Elbit Systems. This content was created using AI and reviewed by the editorial team.
