According to a recent article in Kieler Nachrichten, negotiations for the takeover of the German Naval Yards Kiel (GNYK) shipyard by its much larger competitor TKMS are reportedly well advanced and close to completion. The article notes that only a few details remain to be finalized.
By Lars Hoffmann / Hartpunkt
A spokesperson for TKMS, Germany’s largest naval shipbuilder, declined to comment on the report when asked. GNYK could not be reached for comment at short notice. Observers believe that a merger between the two companies could offer significant potential, as TKMS and GNYK currently share the same shipyard facilities in Kiel, having both originated from the former HDW following its split.
While TKMS focuses on submarine construction at the Kiel site, GNYK operates several halls along with large dry dock and crane capacities. The company has recently faced challenges after the agreed construction work for the Type 126 frigate program—already several years behind schedule—was not assigned to GNYK.
Due in part to the anticipated order for eight new Type 127 frigates in the coming decade, as well as potentially further submarine projects – for example, for Canada – TKMS is likely to have a need for additional production capacity. The shipbuilding group currently has shipbuilding facilities in Kiel and Wismar. An acquisition of GNYK would bring not only around 400 skilled employees in Kiel but also the entire infrastructure at the site into TKMS’s possession.
In the past, GNYK had temporarily leased personnel and hall capacity to TKMS. According to the company, it is now part of the European shipbuilding group CMN Naval, which traces its origins back to the late French-Lebanese entrepreneur Iskander Safa. GNYK has already collaborated with TKMS and NVL on several projects for the German Navy, such as the construction of corvettes.
Should the Kieler Nachrichten report prove accurate and a takeover actually occur, this would strengthen TKMS’s Kiel location and could be seen as a sign of further consolidation in the German naval shipbuilding industry. Rumors suggest that at least one other shipyard in the sector is up for sale. Just a few weeks ago, TKMS’s parent company, thyssenkrupp, successfully floated its naval subsidiary on the stock exchange. Following the spin-off, TKMS, as an independent company, should have significantly more flexibility in its business decisions.
Currently, the second-largest shipyard in the German shipbuilding industry, Naval Vessels Lürssen (NVL), is also undergoing a takeover process by the defense company Rheinmetall. This could potentially be completed by the end of January, as was recently mentioned in a briefing with analysts.
This article by Lars Hoffman was originally published in German language at Hartpunkt.de. It has been translated and republished with authorization.
