Submarine builder: Thyssenkrupp's marine division to go public this year

The plans for the independence of the highly busy Kiel-based submarine builder Thyssenkrupp Marine Systems (TKMS) are progressing. The Essen-based parent company Thyssenkrupp is planning an IPO of its marine division. "We want to complete the IPO in the calendar year 2025. We are also preparing an extraordinary general meeting for this," said Thyssenkrupp CEO Miguel López in the podcast "Am Abgrund - Die Thyssenkrupp-Story" of the "Westdeutsche Allgemeine Zeitung".

However, the industrial group does not want to give up control completely. "We want to issue naval shares that our shareholders will have booked directly into their portfolio. One thing is clear: Thyssenkrupp will retain the majority, i.e. at least 51 percent," said López. In addition to its main shipyard in Kiel, the defense group TKMS also has a shipyard in Wismar in Mecklenburg-Western Pomerania, where it plans to build submarines and warships in the future, just like in Kiel.

Thyssenkrupp shares reacted to the announcement with a price jump of up to 13.5 percent, reaching their highest level since October 2023.

There have already been talks with the federal government and the KfW development bank about the federal government getting involved. According to earlier information from the Federal Ministry of Economics, it said: "We can confirm that the federal government is in talks with Thyssenkrupp about the future of TKMS, as TKMS is of great importance, especially with regard to key defense industry technologies and thus Germany's security interests." The ministry did not want to comment on details.

During a visit to Kiel in January, CDU/CSU candidate for chancellor Friedrich Merz had already promised the shipyard support after taking over the government. "We will make a new start here and support this company in every way so that it can become independent," Merz said at the time.

Schleswig-Holstein's Minister of Economic Affairs Claus Ruhe Madsen (CDU) told the German Press Agency that the shipyard's current order situation and medium-term prospects are excellent. "However, processing the orders requires considerable investment." To do this, the company wants to obtain fresh capital from the capital market. "I continue to assume that the new federal government will also deal with this process. We are also in close contact with the company on this matter."

According to TKMS, the capacity will be at full capacity until the early 2040s. In December, the Bundestag's budget committee approved the construction of four more submarines of the modern 212CD class for the German Navy. The order volume for the German units alone is 4.7 billion euros. According to earlier TKMS information, Norway has also already signaled its intention to increase the number of submarines.

Actually, shares in defense companies are currently in high demand – just not in the USA. There, the large defense companies such as Lockheed Martin and General Dynamics are suffering from the austerity measures of the Trump administration

The division's order books are full, said CEO López. Thyssenkrupp is in regular talks with the German government about the future of the marine division. "An IPO is not only an important step for us, but also strategically relevant for the Federal Republic of Germany with a view to possible cooperation in the European armaments sector."

IG Metall district manager Daniel Friedrich told the German Press Agency, "We assess the order situation and capacity utilization at TKMS as extremely positive." The orders placed shortly before Christmas for additional submarines for the German Navy and for the research vessel "Polarstern" also contributed to this.

"The company is facing significant investments, particularly in the shipyard in Wismar and a further increase in employment," said Friedrich. To achieve this, independence must make a positive contribution and provide the necessary capital. "Regardless of whether an IPO or partnerships with industrial investors are sought, state involvement is crucial for us. We see the federal government as being challenged in every constellation."

André Klohn, Lukas Müller, Natali Schwab/dpa/ms