The new production line forms part of TKMS’s offset procurement activities in Israel and is intended to deepen cooperation between the two companies. Under the agreement, new production facilities will be established and advanced technologies developed based on TKMS’s knowledge and experience.
Paul Glaser, Chief Financial Officer of TKMS, said: “This is a landmark moment for TKMS in Israel. The establishment of this facility symbolizes a long-term partnership with Israel’s defense industry, built on trust, commitment, and shared values. The facility strengthens Israel’s ability to independently manufacture underwater components and creates infrastructure that will enable technological progress and deep cooperation, as part of a joint effort to strengthen stability and security in the maritime domain.”
Elbit Systems will establish the facility to manufacture underwater GRP components for submarines, expanding local production capabilities in a field not previously produced in Israel. The agreement enables Elbit Cyclone to broaden its product portfolio, access new international markets and develop local expertise in advanced underwater component manufacturing.
Yoram Shmuely, General Manager of the Aerospace Division at Elbit Systems, said: “Elbit welcomes the partnership with TKMS. This cooperation will expand local manufacturing capabilities and serve as an anchor for global activity in the underwater domain. The expansion of the plant in the Galilee, as part of the company’s policy of maintaining a strong presence in the Galilee and the Negev, will provide livelihoods for dozens of additional households and strengthen the northern economy.”
Ze’ev Landau, Head of the Directorate of Production and Procurement at the Ministry of Defense, said: “The partnership with TKMS shipyard spans many years, during which the strength of the Israeli Navy has been built and continues to be built for the years ahead. The establishment of the facility as part of industrial offset procurement constitutes part of the Ministry of Defense’s strategy to expand the defense manufacturing base as part of the lessons of the war and will assist in strengthening the IDF, promoting Israeli industries, and developing the economy. We hope that the establishment of the plant will serve as fertile ground for continued successful industrial, technological, and economic cooperation with TKMS shipyard.”
Nurit Tzur Rabino, Director of the Industry Administration at the Ministry of Economy and Industry, said: “The establishment of the new production line for underwater GRP components constitutes a significant leap in the advanced manufacturing capabilities of the State of Israel. This is not merely the construction of a physical facility, but the implementation of some of the most advanced technologies in the world, positioning local industry at the forefront of global naval engineering. This project represents a precise integration between a critical security need and long-term industrial development in the periphery, leading to the creation of high-quality jobs and the expansion of the local supply chain. We are proud to see Israeli industry becoming an inseparable strategic and technological partner in some of the most complex and prestigious projects in the world, thereby ensuring the economic and competitive future of Israeli industry in international markets.”
The facility, located in a national priority area in northern Israel, is expected in its initial phase to employ dozens of workers. The partners state that it represents a significant step in strengthening Israel’s defence manufacturing base and regional industrial ecosystem through investment in advanced infrastructure and innovation.
