India is one of our most important strategic partners in the Indo-Pacific
From the shipyards of Kiel, where steel and seawater have long shaped national ambition, Germany's TKMS has crossed a historic threshold — its order book surpassing twenty billion euros for the first time. The company now stands at the intersection of two vast maritime negotiations: a strategic submarine partnership with India that carries the weight of seventy-five years of bilateral diplomacy, and a competition for Canada's Arctic fleet replacement that would extend Kiel's industrial reach into some of the world's most contested waters. In an era when undersea capability has become a primary currency of geopolitical trust, TKMS's expansion reflects not merely commercial success but the quiet repositioning of Germany as a foundational partner in global maritime security.
- TKMS's order book has surpassed €20.6 billion for the first time, with sales and operating profit both climbing sharply in the first half of 2025, signaling a company accelerating well beyond its historical pace.
- An €8 billion negotiation with India for six advanced submarines under the P75(I) program has reached a critical juncture, with both nations' defense ministers making a rare joint visit to Kiel to tour the production complex and signal readiness for contract signature.
- Simultaneously, Canada's search for up to twelve Arctic-capable submarines — a contract potentially exceeding €10 billion — has drawn TKMS into direct competition with South Korea's Hanwha Ocean, with TKMS's CEO publicly declaring his expectation of victory.
- To anchor its Canadian bid, TKMS has partnered with General Dynamics Mission Systems-Canada to create the Arctic Sentinel R&D center, promising up to one billion dollars in local economic impact and Canadian ownership of intellectual property.
- At home, Rheinmetall's naval expansion through the acquisition of Blohm+Voss and a reported bid for German Naval Yards is sharpening domestic competition, even as TKMS secures sole-bidder status on Germany's new F127 air-defense frigate.
Thyssenkrupp Marine Systems has entered 2025 at a pace it has never sustained before. The Kiel-based submarine builder's order book crossed twenty billion euros for the first time, reaching 20.6 billion euros, while sales rose ten percent and operating profit climbed fourteen percent. Since going public in October 2025, the company has risen into Germany's MDAX index of its ninety largest listed firms. Chief executive Oliver Burkhard has described the trajectory simply: TKMS is on course and expanding.
The deal drawing the most attention is a potential €8 billion contract with India to build six advanced submarines under the P75(I) program, in partnership with state-owned Mazagon Dock Shipbuilders. Formal negotiations with India's procurement authority have been underway since September 2025. The arrangement divides responsibilities clearly: TKMS supplies the design, technical knowledge, and advanced systems including air-independent propulsion and stealth technology, while hull construction, system integration, and delivery take place in Bombay. The strategic symbolism was made tangible in late April when India's defense minister Rajnath Singh and Germany's Boris Pistorius traveled together to Kiel — an unusually senior visit — touring the production complex and boarding the U34 submarine. Pistorius expressed confidence that contract signature was approaching. Beyond the weapons deal, both governments signed a ten-year industrial defense cooperation roadmap and a memorandum on UN peacekeeping collaboration, with 2026 marking seventy-five years of German-Indian diplomatic relations.
In parallel, TKMS is competing for Canada's replacement of its aging Victoria-class fleet — up to twelve submarines in a contract that could exceed €10 billion. Burkhard has stated plainly that he expects to win. The bid, submitted alongside Germany and Norway against South Korea's Hanwha Ocean, is anchored by a new partnership with General Dynamics Mission Systems-Canada to establish the Arctic Sentinel research center, focused on under-ice surveillance technologies. The arrangement promises up to one billion dollars in Canadian economic impact and local intellectual property rights — a deliberate effort to embed the bid in Canadian industrial interests.
TKMS's international appeal rests on a long record: in the 1980s its predecessor HDW delivered India the most advanced diesel submarines then available. Its current flagship, the 212CD class, is a seventy-two-meter vessel engineered for Arctic and under-ice operations. Domestically, the company is also growing — the Bundestag recently approved a preliminary contract for four new MEKO A-200 frigates, and TKMS is the sole bidder for Germany's F127 air-defense frigate. Yet competition is sharpening: Rheinmetall is building a naval division through the acquisition of Hamburg's Blohm+Voss and has reportedly bid for German Naval Yards in Kiel — a facility TKMS has long sought itself. The company has responded by investing heavily in its own infrastructure, opening a major new production complex at the Kiel Fjord in late 2023, capable of handling every phase of submarine construction from raw materials to finished vessels.
Thyssenkrupp Marine Systems, the German submarine builder headquartered in Kiel, has crossed a threshold it has never reached before. In the first half of 2025, the company's order book swelled past twenty billion euros for the first time, settling at 20.6 billion euros. Sales climbed ten percent to roughly 1.17 billion euros, while adjusted operating profit jumped fourteen percent to 60 million euros. The company's chief executive, Oliver Burkhard, described the trajectory simply: TKMS is on course and continues to expand. Since the company went public in October 2025, it has risen into the MDAX, Germany's index of the ninety largest publicly traded firms.
At the center of this growth sits a negotiation that could reshape the company's international standing. India is in the final stages of talks with TKMS and the state-owned Mazagon Dock Shipbuilders to build six advanced submarines under the P75(I) program, a contract valued at approximately eight billion euros. The two companies have been in formal negotiations with India's procurement authority since September 2025. Nils Beyer, TKMS's head of communications, confirmed the talks remain active but declined to discuss specifics, citing the sensitivity of the moment. What he did emphasize was the strategic weight of the partnership: India sits in one of the world's most strategically vital maritime theaters, and this project would represent both an industrial opportunity and a long-term strategic collaboration for TKMS.
The arrangement divides labor clearly. TKMS will provide the submarine design, the underlying technical knowledge, and experience from similar programs worldwide—including advanced technologies like air-independent propulsion and stealth systems. The actual construction of the hull, system integration, and delivery will happen in Bombay. In late April, India's defense minister Rajnath Singh and his German counterpart Boris Pistorius traveled together to Kiel in an unusually high-ranking visit that underscored the deal's importance. They toured the production complex and boarded the U34 submarine. Pistorius expressed confidence that the P75(I) project could soon move to contract signature. Singh, writing on social media afterward, noted what he had learned about cutting-edge technologies and advanced maritime-military capabilities. Beyond the weapons contract itself, both governments signed a ten-year roadmap for industrial defense cooperation in Berlin and a memorandum on collaboration in UN peacekeeping missions. The timing carries symbolic weight: 2026 marks seventy-five years of German-Indian diplomatic relations. Pistorius framed the partnership in geopolitical terms, calling India one of Germany's most important strategic partners in the Indo-Pacific—a characterization that carries particular weight given that India continues to cooperate with Russia in defense matters, a factor Berlin must navigate as it deepens the relationship.
While the Indian deal dominates attention, a second competition is unfolding in parallel. Canada is seeking to replace its aging Victoria-class submarines and is considering the purchase of up to twelve new boats, a contract that could exceed ten billion euros. TKMS has submitted an initial non-binding offer alongside Germany and Norway, competing against South Korea's Hanwha Ocean. Burkhard has stated his expectation plainly: he assumes they will win. If the bid succeeds, the submarines would be built in Kiel and Wismar in Mecklenburg-Western Pomerania. To strengthen the bid, TKMS agreed in early May to a partnership with General Dynamics Mission Systems-Canada to establish a research and development center for Arctic underwater surveillance technologies called Arctic Sentinel, specifically engineered for Arctic waters. The arrangement explicitly contemplates local value creation: the economic impact in Canada is estimated at up to one billion dollars, and intellectual property will remain in Canadian hands.
The international appetite for Kiel-built submarines rests on decades of proven performance. In the 1980s, the predecessor shipyard HDW delivered to India the most advanced diesel submarines in the world at that time. The current flagship product, the 212CD class, stretches seventy-two meters, is designed for Arctic missions and under-ice operations, and carries enhanced sensor technology. Germany and Norway have each ordered six units; the identical design across both fleets is meant to reduce costs and improve NATO compatibility. Beyond international sales, TKMS is also growing domestically. In March, the Bundestag's budget committee approved a preliminary contract for four new MEKO A-200 frigates, and TKMS is the sole bidder for Germany's new F127 air-defense frigate. The company aims for average annual sales growth of around ten percent over the medium term.
Yet competition is sharpening at home. Rheinmetall, the Düsseldorf-based defense group, is building its own naval division through the acquisition of Hamburg's traditional Blohm+Voss shipyard and has reportedly submitted a non-binding offer for the neighboring Kiel-based German Naval Yards—a facility TKMS has long pursued itself. Alongside its expanding order book, TKMS has invested substantially in its production facilities. In November 2023, the company opened a new complex at the Kiel Fjord with eight production halls capable of handling every phase of submarine construction, from raw materials to fully assembled boats. The facility sits with views of the old city across the water, a physical embodiment of how thoroughly the company has woven itself into Kiel's industrial identity.
Citações Notáveis
India is one of the most strategically vital maritime theaters in the world, and the P75(I) program is key to strengthening India's submarine capabilities. For TKMS, this partnership represents both an important industrial opportunity and a long-term strategic collaboration.— Nils Beyer, TKMS head of communications
I assume we will win the Canadian contract.— Oliver Burkhard, TKMS chief executive
A Conversa do Hearth Outra perspectiva sobre a história
Why does Germany care so much about selling submarines to India right now?
India sits in the Indo-Pacific, which Germany now sees as central to its own security interests. It's not just about the sale—it's about having a partner in a region where China's influence is growing. A submarine deal cements that relationship in a way that lasts decades.
But India still buys weapons from Russia. Doesn't that complicate things?
It does. Germany knows that. But the calculation is that having influence in India is better than having none. You work with the partners you have, not the ones you wish you had.
What about the Canadian deal? That seems like a different kind of competition.
It is. Canada needs submarines for the Arctic, and TKMS is betting that German engineering plus a partnership with an American defense contractor plus local jobs in Canada adds up to a winning bid. But Hanwha Ocean from South Korea is a serious competitor.
If TKMS wins both deals, what changes?
The company becomes a global player, not just a European one. It also means German defense industry has real leverage in two regions that matter strategically—the Indo-Pacific and the Arctic. That's not small.
What's the risk if they lose?
The Indian deal is the bigger one. Losing that would signal that German technology isn't the choice for a rising power. The Canadian deal is important, but it's secondary. India is the statement.