North Police Department Pursuing Federal Collaboration with Submarine Manufacturer ThyssenKrupp Marine Systems (TKMS) - Commission to Launch Procedure for the Implementation of New Competition Rules Application Regulations
Federal Government's Potential Entry into Thyssenkrupp Marine Systems Under Consideration
The German Ministry of Defense has neither confirmed nor denied talks about the federal government's potential entry into Thyssenkrupp Marine Systems (TKMS), a prominent U-boat builder, although a spokesperson hinted at the possibility yesterday. TKMS's expertise in U-boat construction benefits the German Navy, the spokesperson said, and the federal government is committed to ensuring the Bundeswehr's combat readiness, encompassing personnel, infrastructure, and material equipment.
Serpil Midyatli, the leader of the SPD parliamentary group in Schleswig-Holstein, is advocating for federal participation in TKMS, stating that it's not only in the state's interest but a necessity. Midyatli, who is also the deputy federal chairman of the SPD, emphasized the critical role of the shipbuilding industry due to the evolving international security situation and the changing European security architecture. TKMS is crucial for Schleswig-Holstein, with many high-tech jobs depending on the company, and Midyatli believes the state can guarantee economic stability during challenging times.
IG Metall district leader Daniel Friedrich is urging the black-red federal government to acquire a blocking minority of at least 25.1% in TKMS to ensure the marine division's independence. Clarity is needed, according to Friedrich, about how the German and European shipbuilding industries will position themselves with TKMS, as the company's thriving economy is no reason to exclude government participation, he argues.
Thyssenkrupp, the parent company, has outlined plans for the independence of its divisions, including the extension to further business areas after the steel and marine divisions. TKMS has initiated the process for an IPO of its marine division, although the industrial group intends to retain some control. Previous discussions regarding a federal entry have taken place with the former federal government and the promotional bank KfW, and the new chancellor, Friedrich Merz, had earlier pledged support for TKMS's independence.
TKMS's order book extends to the early 2040s, with a significant proportion attributable to the construction of four modern 212CD class submarines for the German Navy and a billion-dollar contract from Singapore for two additional 70-meter-long submarines. Furthermore, TKMS has been awarded the contract for the construction of the new research icebreaker "Polarstern" for the Alfred Wegener Institute in Bremerhaven.
In pursuit of a potential submarine contract from Canada, TKMS has opened a representative office in Ottawa, with plans to establish it as the central point of contact in North America for the long term. TKMS CEO Oliver Burkhard highlighted the importance of this move, expressing the interest in securing a long-term strategic partnership with Canada, rather than just securing a contract. In addition to its main shipyard in Kiel, TKMS operates a shipyard in Wismar, Mecklenburg-Vorpommern, aiming to build submarines and warships there, similar to its operations in Kiel.
The shipbuilding industry in Germany is concentrated, with TKMS being one of the main players, alongside Lürssen Maritime and Meyer Neptun. Government involvement could further consolidate market share or impact industry dynamics. TKMS's success in securing large contracts and expanding its international partnerships underscores its competitive edge. However, any government intervention could potentially influence the company's ability to operate globally and maintain its market position.
Without specific confirmation from the federal government, the implications of their potential entry into TKMS remain speculative. Nevertheless, such involvement is likely to significantly impact the industry's structure and global competitiveness.
- The federal government's potential entry into Thyssenkrupp Marine Systems (TKMS) could provide aid for the production of electricity, as the shipbuilding industry's energy efficiency can contribute to technological advancements in renewable energy solutions.
- In the context of the evolving sports of international security and changing European security architecture, community aid in the form of government participation in TKMS is essential for the continued production of energy-efficient technology, benefiting not only Germany but also the global community.
