Elbit Systems will produce submarine parts in Karmiel in cooperation with the German TKMS

Israel will produce parts for German submarines. The Ministry of Defense, Elbit Systems and the TKMS company announced today (Wednesday) that for the first time components for submarines will be produced in Israel. The two companies opened a new production line in the Bar Lev industrial area in Karmiel for the production of underwater structural components for submarines. As part of the collaboration, Elbit Systems will build a new production facility for underwater fiberglass reinforced polyester GRP components for submarines.

The new production facility was established in the north of the country, and is intended for the production of underwater GRP components for submarines. The facility is part of the TKMS collaborations under the mutual procurement umbrella in Israel.

“The construction of the facility is a significant milestone in the development and expansion of the Israeli defense production base, and reflects a large-scale investment in advanced infrastructure and industrial innovation. The plant, which is located in a national priority area, is expected to employ dozens of workers in the first phase, and will contribute to strengthening the Israeli economy, creating quality jobs in the north of the country, and deepening the industrial ecosystem in the region,” Elbit said.

The entire move is carried out within the framework of an industrial agreement between the companies, under which new production facilities will be established and advanced technologies will be developed based on the knowledge and experience of TKMS.

The agreement allows Elbit Cyclone to expand its product portfolio, market them in new international markets, and establish local expertise in the production of advanced underwater components, a field that has not been produced in Israel until now. The collaboration locates the production of these parts for the first time in Israel, and strengthens the north of the country as a strategic industrial and technological center. The activity of the facility is a regional growth engine, combining advanced industry, innovation and defense production under one roof.

The German TKMS is one of the world’s leading companies in the maritime field, with more than 9,100 employees in three shipyards in Kiel, Wismar and Itzai (Brazil), and other sites around the world. The company operates as a systems supplier for submarines and surface vessels, as well as marine electronics and security technologies. About 3,300 workers are employed at the Kiel site, making it the largest shipyard site in Germany. 185 years of history and constant striving for improvement allow the company to repeatedly set new standards. TKMS offers its customers around the world customized solutions for the complex challenges of a changing world. The driving force behind innovation is the company’s employees, who shape the future of TKMS with daily dedication and commitment.

Elbit Systems employs about 20,000 people in dozens of countries across five continents. The company reported revenues of $1.922 billion in the quarter that ended on September 30, 2025, and an order backlog of $25.2 billion as of this date.