GERMANY – Thyssenkrupp has announced plans to invest 250 million euros ($279 million) at its unit that builds submarines and warships, the German industrial conglomerate said on Monday.
The investment comes days after the group said it would invest a similar amount in a new hot-dip coating facility at its steel division, Steel Europe.
The investment at Thyssenkrupp Marine Systems (TKMS) will be made by 2023, the group said, pointing to good order intake at the moment.
TKMS also revealed that it will also hire 500 new employees by the end of next year to handle the anticipated increase in workload.
“Our ambition is to be Europe’s most modern naval company. By making major investments, we are preparing our operations for the future,” TKMS Chief Executive Rolf Wirtz said in a statement.
The CEO of the German conglomerate added by saying, “Our recent successes show that there is strong demand for our products and services. We want to further strengthen this position.”
Thyssenkrupp also revealed that it had been contracted by an African customer in August to build four frigates.
A frigate is a is a type of warship, built for speed and maneuverability and are used to protect other warships and merchant-marine ships.
They especially by modern navies as anti-submarine warfare (ASW) combatants for amphibious expeditionary forces, underway replenishment groups, and merchant convoys.
According to Thyssenkrupp’s latest report show that order intake at TKMS was down a fifth at 385 million euros in the first nine months of the year, while sales were up a third at 1.305 billion euros.
The unit achieved break even on an adjusted operating profit level following a 117-million-euro loss last year.
As part of a restructuring, Thyssenkrupp has said it is open to selling a majority of TKMS, Germany’s second-largest defense group after Rheinmetall, which has been mentioned as a potential buyer, along with France’s Naval Group.