The CEO of Thyssenkrupp Marine Systems, Oliver Burkhard (4th R), the German Defense Minister Boris Pistorius (6th R) and the Prime Minister of State of Mecklenburg-Western of Pomerania, Manuela Schwesig (8th R), during their visit to a shipwrecker of Thyssenk Marine Systems which will strengthen the submarines Military on Jan. 17, 2025 in Wismar, Marine.
Morris Macmatzen | Getty Images News | Getty images
According to CEO Oliver Burkhard, the German naval system manufacturer Thyssenkrupp expects the size of its market to be tripled at the end of the decade, according to CEO Oliver Burkhard.
“This market achievable in electronics, drones, surface ships and submarines, we expect it to double or even triple at the end of this decade,” Burkhard told CNBC on the singapore Defense Technology Summit.
This comes to the rear of the vote by the German Parliament in favor of a major tax package, which includes changes to long -standing debt policies to allow higher defense expenses.
Burkhard said that this decision shows that “with regard to the defense budget, there is no more or less limit”.
The proposed changes mean that defense and certain security expenses above a certain threshold would no longer be subject to the braking of the debt, which limits the quantity of debt that the government can take and dictates the size of the structural budget deficit of the federal government.
“It’s unusual for Germany,” said Burkhard, noting that the reform was accompanied by German Chancellor Friedrich Merz would have said “Given the threats to our freedom and our peace on our continent, the rule for our defense must now be” anything. “”
Burkhard stressed that “the Germans normally do not say” everything you need “, because [its] very irrational. We have kpi, we have figures, we have arguments, we have surveys, we have research. Based on the latter, so we say something, but we have never said “anything” and “everything you need” is more or less unlimited “.
He added: “It means that it’s 500 billion [euros] Or even more, it is a kind of special funding that has not been there, never seen before since 1945. “
What this means for the defense industry in Germany, he said is that the government would like to speed up projects and buy more from industry.
Thyssenkrupp Marine Systems, or TKMS, is the division of the warship for the German Conglomerate of Industrial Engineering Thyssenkrupp, and manufactures ships and naval submarines.
When asked if the company is considering a passage from the construction of traditional naval ships with unmanned sea drones, such as those used in the Russian-Ukraine war, Burkhard suggested that those who could be better described as an “extension” of current naval platforms, such as submarines surrounded by drones above and underwater.
Bukhard has given an example, saying that customers may not order four submarines, but perhaps two, with 50 autonomous vehicles.
He recognized the obstacles to strengthening capacity, however, saying: “Everyone has higher budgets. Everyone wants to have it faster, and demand is very strong”.
Tkms had acquired a New shipyard in the north of the German city of Wismarwhich will be used to produce new ships for Germany, Norway and Israel, in addition to its traditional naval construction in Kiel and an installation in Brazil.
But Burkhard also admitted that the company should seek partnerships if it wanted to develop. He pointed out a point joint venture earlier in 2025 With the naval manufacturers of India Mazagon Dock, through which TKMS will help to design and design six submarines for the Indian Navy. Mds built them in India.
Spin off
Tkms was In the headlines recentlyOn the announcement that he will be transferred from the parent company Thyssenkrupp and registered on the Frankfurt Stock Exchange. CEO Burkhard revealed that “we will try to do so this calendar year”.
Investors seem to have brought an increased appetite for defense expenses. On an annual basis, Thyssenkrupp’s actions increased by 155% to March 19. This momentum, said Burkhard, improves the prospects of a spin-off this year.
He said that the message of the fallout is clear: TKMS is on “a path to independence”.
He added that Thyssenkrupp shareholders have “suffered” in recent years in light of the problems of his steel and automotive companies. Reports Reuters And German media revealed that the company should reduce 1,800 jobs in its automotive division and 11,000 jobs in its steel segment.
TKMS is the “pearl” in the portfolio of the parent company Thyssenkrupp, said Burkhard, adding that the spin-off would allow investors to participate in the history of business growth.
“We are trying to reverse this pearl and give all TK shareholders a share of TKMS, then they can decide on the first day of negotiation if they want to keep it … I think they really appreciate what we are,” he said.
– Sophie Kiderlin of CNBC contributed to this report.
