TKMS opens new facility for underwater submarine components in Israel

February 19, 2026, by Fatima Bahtić

Israel’s Elbit Systems and German shipbuilder TKMS have inaugurated a new production line in Israel to manufacture underwater structural components for submarines.

As part of the cooperation, Elbit Systems will establish a new manufacturing facility for underwater GRP (Glass Reinforced Polyester) components for submarines.

The facility constitutes an additional step in deepening ties between the two companies and is part of TKMS’s industrial cooperation activities under the offset procurement framework in Israel.

The entire initiative is carried out under an industrial agreement between the companies, under which new production facilities will be established and advanced technologies developed based on TKMS’s knowledge and experience.

“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,” Paul Glaser, CFO of TKMS, said.

“Elbit welcomes the partnership with TKMS. This cooperation will expand local manufacturing capabilities and serve as an anchor for global activity in the un derwater 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,” Yoram Shmuely, General Manager of the Aerospace Division at Elbit Systems, stated.

The agreement will enable Elbit Cyclone to expand its product portfolio, market them in new international markets, and establish local expertise in the production of advanced underwater components, a field that has not been manufactured in Israel until now. The cooperation strengthens northern Israel as a strategic industrial and technological center.

The establishment of the facility represents a significant milestone in the development and expansion of Israel’s defense manufacturing base and reflects a broad investment in advanced infrastructure and industrial innovation.

The plant, located in a national priority area, is expected in its initial phase to employ dozens of workers and will contribute to strengthening the Israeli economy, creating high-quality jobs in northern Israel, and deepening the regional industrial ecosystem.

Recently, TKMS signed a framework agreement with Israel’s SpearUAV to advance sub-to-air loitering unmanned aerial system (UAS) capabilities for underwater platforms.