Israel will produce parts for German submarines. The Defense Ministry, Elbit Systems, and TKMS announced that components for submarines will be manufactured in Israel for the first time. The two companies have launched a new production line in the Bar Lev industrial zone in Karmiel for the manufacture of underwater structural components for submarines. As part of the collaboration, Elbit Systems will establish a new facility for the production of GRP (glass-reinforced polyester) underwater components for submarines.
The new production facility has been established in northern Israel and is intended for the production of GRP underwater components for submarines. The facility is part of TKMS’s collaboration initiatives under the offset procurement umbrella in Israel.
“The establishment of the facility represents a significant milestone in the development and expansion of Israel’s defense manufacturing base, reflecting a broad investment in advanced infrastructure and industrial innovation. The factory, located in a nationally prioritized area, is expected initially to employ dozens of workers and will contribute to strengthening the Israeli economy, creating high-quality jobs in northern Israel, and deepening the industrial ecosystem in the region,” said Elbit Systems.
The entire initiative is conducted under an industrial agreement between the companies, under which new production facilities will be established and advanced technologies developed based on TKMS’s knowledge and experience.
The agreement allows Elbit Systems Cyclone to expand its product portfolio, market it to new international markets, and establish local expertise in manufacturing advanced underwater components - a field that has not previously been produced in Israel. The collaboration positions the production of these components in Israel for the first time, reinforcing northern Israel as a strategic industrial and technological hub. The facility’s operations constitute a regional growth engine, combining advanced industry, innovation, and defense manufacturing under one roof.
German TKMS is one of the world’s leading companies in the maritime sector, employing over 9,100 people across three shipyards in Kiel, Wismar, and Itajaí (Brazil), as well as other sites worldwide. The company operates as a systems supplier for submarines and surface vessels, as well as marine electronics and security technologies. Approximately 3,300 employees work at the Kiel site, making it the largest shipyard facility in Germany. With 185 years of history and a constant drive for improvement, the company continuously sets new standards. TKMS provides its clients worldwide with tailored solutions for the complex challenges of a changing world. The driving force behind its innovation is its workforce, shaping TKMS’s future with dedication and daily commitment.
Elbit Systems employs approximately 20,000 people across dozens of countries on five continents. The company reported revenues of $1.922 billion in the quarter ending September 30, 2025, and a backlog of orders totaling $25.2 billion as of that date.