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ThyssenKrupp Marine Systems has secured a major deal

Israel signed the €3 billion ThyssenKrupp submarine deal, for three new submarines from the series of Dakar–class submarines.

January 21, 2022 By Ayushee Chaudhary Photo(s): By ThyssenKrupp Marine Systems
Dr. Rolf Wirtz, CEO thyssenkrupp Marine Systems and Amir Eshel, Israeli Ministry of Defence signing the agreement

After extensive negotiations ThyssenKrupp Marine Systems has reached an agreement with Israel on the framework conditions for the purchase of three Dakar-class submarine, informed the company in a press release. The deal amounts to €3 billion.

These submarines are expected to be the most advanced submarines ever delivered to Israel. The addition of these will also take the number of submarines in Israel's fleet to nine. Israel's Ministry of Defence has announced that this series of submarines will be called "Dakar," and the first of this new series will be delivered to Israel in 2031.

The addition of these will also take the number of submarines in Israel's fleet to nine.

ThyssenKrupp ensured that the Dakar class will be of a completely new design, which is to be specifically engineered to fulfill the operational requirements of the Israeli Navy. The three submarines will replace the first batch of Dolphin-class submarines.

"The agreement includes reciprocal procurement of more than €850 million including procurement from Israeli industry and Israel defence industries of hundreds of millions of euros, which will yield knowhow, open up markets overseas, professional training, jobs, and technological development for the Israeli economy and Ministry of Defence," Israel's Defence Ministry stated.

The first of this new series will be delivered to Israel in 2031.

Dr Rolf Wirtz, CEO ThyssenKrupp Marine Systems said, “The new class of submarine will provide Israel with the most advanced capabilities, based on an innovative, cutting-edge technology.”

Here’s sneak peek into the conglomerate’s timeline with submarines till now -

Submarines:
Nearly two centuries of technical expertise & know-how

Israel's Minister of Defence Benny Gantz said, "Procuring three first-class operational submarines joins a range of measures that we have been promoting over the past year to equip and empower the IDF and its operational readiness for theater of war. I want to thank the German government for its assistance in moving forward with the deal and its support and commitment to Israel's security. I am certain that the new submarines will upgrade the Israel Navy's ability and assist in maintaining Israel's military supremacy in the region."

ThyssenKrupp is yet to undertake the full reciprocal procurement required by past deals including the sixth submarine, which is currently being built in Kiel as well as a deal to procure four warships to protect Israel's offshore gas rigs.

ThyssenKrupp ensured that the Dakar class will be of a completely new design, which is to be specifically engineered to fulfill the operational requirements of the Israeli Navy.

Before the contract comes into effect, ThyssenKrupp Marine Systems will have to hold intensive talks with its suppliers. In preparation for the expected order, the company had already agreed to investments of about Euro 250 million for ThyssenKrupp Marine Systems in 2019. Kiel is thus securing its location as an international centre of competence for conventional submarine construction. Construction of a new shipbuilding hall and a fuel-cell production facility is already visible on the shipyard site.

Wirtz mentioned the SA'AR-6 project remembering, “In the last joint project with the Israeli Navy, the SA'AR-6 project, we delivered four corvettes on time and within budget. In this respect, we are very much looking forward to working with our longstanding partner again.”

Illustration of the new Dakar-class submarines

In May 2021, ThyssenKrupp Marine Systems had handed over “INS Oz” in Kiel to the Israeli Navy. With it, ThyssenKrupp Marine Systems officially handed over the second of four SA'AR 6 corvette to the Israeli Navy, last year. The contract for the delivery of four SA'AR 6 corvettes - performed by ThyssenKrupp Marine Systems (Lead) and project partner German Naval Yards - was signed in May 2015. The company had stated then that the SA'AR 6-class corvettes will form the backbone of the Israeli Navy for the next 30 years. ThyssenKrupp Marine Systems is building the ships in a joint venture with German Naval Yards Kiel. The Israeli Navy is itself equipping the corvettes with radar and weapon systems after their arrival in their homeport.

ThyseenKrupp is yet to undertake the full reciprocal procurement required by past deals including the sixth submarine

In July 2021, “INS Atzmaut” and “INS Nitzachon” were also handed over to Israel Navy, marking the order complete. The ships have the stealthy design of a low-signature missile corvette with tailor-made solutions and numerous new technologies onboard. After the design phase of the corvettes, the construction phase began with the type ship’s first cut ceremony in February 2018. 15 months later, the first steel was cut, and the ship was undocked. In May 2019, the “INS Magen” received its name in Kiel and was handed over in November 2020.

The German government is likely to finance over 20 per cent of the cost of the new submarine program. Earlier also Germany financed Israel's submarine program by paying between 33 per cent to 50 per cent of the total sum. Israel’s Navy operates five German-built Dolphin-class submarines, with a sixth under construction in Germany.