Federal Police in North SPD Seek Entry to Undersea Vessel Manufacturer TKMS - Commission Pursues Implementation of Fresh Competition Rules Regulation
The German Ministry of Defense has not yet made a definitive decision on a potential federal entry into Thyssenkrupp Marine Systems (TKMS), a key player in the construction of U-boats that also benefits the German Navy. Schleswig-Holstein's SPD state parliament faction leader, Serpil Midyatli, has advocated for federal investment in TKMS, citing the importance of the company to the state's economy and the security situation in Europe.
Midyatli highlighted the strategic importance of the shipbuilding industry, especially with regards to TKMS, in the face of international security challenges and changes to the European security architecture. She claimed that the state could potentially act as a guarantor to support TKMS during challenging times, owing to its high economic value and the high-tech jobs it supports.
IG-Metall regional leader Daniel Friedrich urged the federal government to secure a minimum blocking minority stake of 25.1% in TKMS, arguing that this would provide the Marine division with sufficient control rights and securities. Friedrich's call echoes previous discussions about a federal entry into TKMS, which included talks with the previous federal government and promotional bank KfW.
However, it should be noted that TKMS has reportedly been planning an IPO for its marine division, suggesting that the company does not currently seek direct federal government intervention. The Turkish-born SPD federal vice-chairperson, Midyatli, expressed her belief that a state participation in TKMS would send a significant positive signal to Kiel and all of Schleswig-Holstein.
TKMS is currently fully booked until the early 2040s, with multiple significant contracts underway. In December, the Budget Committee of the German Bundestag approved the construction of four additional U-boats of the modern 212CD class for the German Navy, with an order volume of 4.7 billion euros. Adding to this, Singapore has placed an order for two more 70-meter U-boats from TKMS, increasing the order book to around 18 billion euros.
In addition to its main shipyard in Kiel, TKMS plans to expand its operations to a shipyard in Wismar, Mecklenburg-Vorpommern, with the aim of building submarines and warships there, similar to its operations in Kiel. TKMS is also actively pursuing potential submarine contracts from Canada and has established a representative office in Ottawa for this purpose.
In summary, while the German federal government has not yet indicated a move towards direct investment in TKMS, the company continues to win significant international contracts, particularly in Southeast Asia, and is expanding its operations in Germany. The ongoing debate about potential state involvement in TKMS highlights the strategic importance of the shipbuilding industry to both the German economy and European security architecture.
- Midyatli proposed that the state could leverage technology from the high-tech jobs supported by TKMS to enhance community aid, especially in the face of international security challenges and the changing European security architecture.
- The potential energy efficiency gains from investments in TKMS, with its expansion into renewable energy solutions for the production of electricity, could significantly contribute to overall energy efficiency in Germany and Europe.
