Thyssenkrupp Eyes Europe Shipyard Deals After Naval Orders Surge

By William Wilkes

May 10, 2025 (Bloomberg) —Thyssenkrupp AG’s naval division is scouting for shipbuilding partners across Europe, as new submarine orders push its German shipyards toward full capacity.

Thyssenkrupp Marine Systems, Germany’s largest naval shipbuilder, announced Thursday that Singapore has ordered two additional Type 218SG submarines, bringing its total to six. The deal means TKMS’s two shipyards will run near full capacity well into the 2040s, just as Europe ramps up defense spending.

“We’re working on finding partners and options for consolidation,” TKMS Chief Executive Officer Oliver Burkhard said Thursday in an interview. “There’s an unbalanced capacity usage across Europe and we have to think in European terms.”

Despite being one of Europe’s leading naval shipbuilders, TKMS has long been constrained by underinvestment from its parent company. Past efforts at European consolidation have stalled, in part due to Berlin’s reluctance to cede control over the firm’s submarine technology, which is viewed as a strategic national asset.

Germany’s naval spending is expected to rise significantly after the Bundestag amended its debt rules to allow potentially unlimited military investment. Further urgency came after US Vice President JD Vance cast doubt on the transatlantic defense alliance, raising concerns about America’s central role in securing key waterways like the Baltic Sea, where Russia maintains major naval bases.

With its main production line in Kiel, TKMS is also overhauling a second facility on the country’s northeastern seaboard in Wismar. The company acquired the Wismar yard in 2022 after the bankruptcy of MV Werften, previously known for building cruise ships, and is converting it to submarine production.

“Right now, I’m not aiming for a third yard, but if demand keeps growing, we might need to consider it,” Burkhard said, noting that TKMS has doubled its production capacity in the past three years. “In Wismar, there is still some more capacity.”

Thyssenkrupp intends to partially list TKMS later this year, and Burkhard said the plan remains on track, despite market turmoil sparked by US President Donald Trump’s trade policies. 

“It’s on track,” he said, adding that the defense sector is in a “special situation” and that investor interest remains strong.

© 2025 Bloomberg L.P.

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