Thyssenkrupp Marine Systems' (TKMS) Spin-off Journey: Unveiling the Future of Shipbuilding
TKMS advances with separate venture for submarine technology - TKMS advocates for division or secession
Get ready for a game-changer in the marine shipbuilding industry! Thyssenkrupp has rebranded its marine division, and it's none other than TKMS—short for Thyssenkrupp Marine Systems—the Kiel submarine builder. Oliver Burkhard, the CEO of TKMS, has hinted at a potential Initial Public Offering (IPO) in the near future.
In an interview, Burkhard announced that the supervisory board is planning to discuss this venture by the end of June, with an extraordinary general meeting to follow suit, perhaps during the summer. If all goes according to plan, the IPO may occur in fall. This spin-off aims to make it smoother for TKMS to secure capital, but it's important to remember that it's not an instant money multiplier.
A 49% stake in the new holding company will be available for shareholders, post spin-off. The parent company, Thyssenkrupp, will control the majority, making it a logical step for the new company's trading on the Frankfurt Stock Exchange.
"TKMS is a real success story as we stand today," said Volkmar Dinstuhl, a member of Thyssenkrupp's board, highlighting the advantage of independence paving the way for possible industry consolidation on a national or European scale. Dinstuhl confirmed ongoing discussions with the federal government regarding a potential stake.
Chancellor Friedrich Merz (CDU) had already shown support for TKMS's independence during a visit to the shipyard in January. Historically, talks about a federal stake have taken place with the previous government, as well as KfW, the promotional bank.
TKMS proudly boasts of its world leadership position in non-nuclear submarines and its full order books extending until the early 2040s. The German Bundestag approved the construction of four more submarines of the 212CD class in December, with options for Norway to purchase additional boats, which TKMS anticipates may happen. This massive order book totals around 18 billion euros, and TKMS is vying to build submarines for Canada, too.
With ambitious modernization plans for Kiel and Wismar shipyards, costing 220 million euros and creating approximately 1,500 jobs by 2029, TKMS expects a total workforce of 8,500 in the near future. This spin-off, backed by an impressive order book and continuous growth opportunities, is poised to dominate the maritime defense industry in Europe, triggering enhanced competitiveness, increased investment, and market positioning.
The spin-off of Thyssenkrupp Marine Systems (TKMS) aims to secure financial resources for the company, allowing it to compete more effectively in the maritime defense industry. With an impressive order book and modernization plans for Kiel and Wismar shipyards, TKMS expects to create jobs and position itself as a leader in the European market, boosting energy efficiency and competitiveness in the marine industry.
The potential Initial Public Offering (IPO) of TKMS could attract investment from outside sources, such as the finance industry, business, and possibly the federal government. This increased investment could lead to energy efficiency improvements in the production of electricity, benefiting the wider community through lower energy costs and a more sustainable industry.
