TKMS and Navantia from the memorandum. In the background construction of submarines in Spain

TKMS and Navantia signed a memorandum on cooperation with ship programmes in Europe and other markets. The agreement provides for the possibility of building submarines of the TKMS project at Navantii shipyards in Spain, including for future export programmes.

Response to increasing demand and limited capacity of shipyards

Both companies stressed that in recent years the geopolitical situation has clearly increased demand for modern warships. At the same time, in Europe, there is a growing increase in capacity constraints and technological resources that hinder the efficient implementation of the new programmes.

In this context, TKMS and Navantia want to check whether closer industrial cooperation would allow such projects to be implemented faster, more efficiently and with better cost optimization. As stressed, further discussions are to take place between the managers of both companies, while respecting competition and export control regulations.

Spanish shipyards can build TKMS projects

One of the most important elements of the signed memorandum is the possibility of building TKMS project ships in Navantii shipyards in Spain. The Communication clearly identifies, in particular, submarines, which remain one of the key activities of the German group. The agreement is intended to cover cooperation with future programmes implemented in Europe, for NATO countries and for the export market.

This is an important signal from the point of view of the European shipbuilding industry. In practice, this may mean trying to make better use of existing shipbuilding infrastructure when the order book grows faster than the production capacity of individual plants.

European cooperation instead of acting alone

TKMS President Oliver Burkhard assessed the signing of the memorandum as an important signal for the European shipbuilding industry. He stressed that with growing demands of customers and limited production capacity closer cooperation between European companies is now becoming a necessity. In his opinion, TKMS and Navantia together have the competence, facilities and experience to respond more efficiently to the needs of the armed forces of the partner countries.

Similarly, the chairman of the supervisory board said TKMS Volkmar Dinstuhl. He stressed that TKMS has been one of the world leaders in the conventional-powered submarine segment for years. He also pointed out that the memorandum was intended to help make better use of the potential of the shipyards of both partners, which combines a high quality approach and timely delivery of supplies.

Thyssenkrupp sees this strategic direction

The agreement was also addressed by Miguel López, Deputy Chairman of the TKMS Supervisory Board and President of Thyssenkrupp AG. He pointed out that, as a majority shareholder of TKMS, the company was responsible for the strategic direction of the development of one of the leading European shipbuilding industries. According to him, partnership with Spain's Navantia can be a promising response to the growing international demand for modern maritime systems.

This shows that the memorandum is not just a declaration of intent. From a ownership perspective, it is intended to be part of a broader approach to the development of industrial competences and increase production capacity.

Navantia talks about strengthening European autonomy

On the Spanish side, the strategic dimension sounded most strongly. Ricardo Domínguez, standing on Head of Navantii, assessed the signing of the document as an important step towards strengthening European strategic autonomy and sovereignty in the field of defence. According to him, cooperation is intended to provide modern capabilities to armed forces while fully exploiting the potential of European defence investments.

Gonzalo Mateo-Guerrero, Operations Director Navantii, highlighted the responsibility of European defence companies to current challenges. In his view, Europe needs an industry capable not only of delivering modern technologies but also of providing fast and certain supplies and long-term support for exploitation. He added that such a cooperation model should strengthen the entire European industrial ecosystem, including the small and medium-sized enterprises sector.

The memorandum opens the way for cooperation, but it does not prejudge contracts yet

The signed memorandum does not yet mean specific implementing agreements. However, it sets out the direction of further discussions between the two groups and shows that TKMS and Navantia see the need for closer industrial cooperation. This responds to the growing demand for warships and the limited ability to quickly implement such programmes in Europe.

From a market point of view, that's a clear signal. The European shipbuilding industry is looking not only for new orders today, but also for a cooperation model that will translate the growing defence ambitions of NATO and the European Union into real opportunities to build ships.

The memorandum of TKMS and Navantii is part of an increasingly clear trend in the European shipbuilding industry. More and more often, it is not about developing programmes alone, but about agreements that allow us to share tasks, combine competences and build ships more efficiently. In a similar direction they went earlier Babcock and Saab, as well as Navantia and Fincantieri on the show European Patrol Corvette.

The agreement between TKMS and Navantii is no exception. This is further proof that the European shipbuilding industry is entering a stage where cooperation between large shipbuilding groups becomes a necessity. Cost increases, programme calendars are tense, while pressure on faster deliveries is increasing.