The sale to Saab of ThyssenKrupp Marine Systems, formerly Kockums, includes facilities at Karlskrona. (ThyssenKrupp)
BONN — German ThyssenKrupp Industrial Solutions, Essen, announced that it will sell ThyssenKrupp Marine Systems (formerly Kockums) to Saab for about €37 million (US $51.45 million).
ThyssenKrupp Industrial Solutions, part of German industrial giant ThyssenKrupp, has been in talks with Saab since April, when they signed a nonbinding memorandum of understanding on the acquisition of the Swedish shipyard.
According to the German company, it has also been pursuing the sale in line with the Swedish government’s preference for national shipbuilding programs. After a dispute earlier this year, Sweden stated its aim of rebuilding an indigenous submarine design and production capacity.
Now ThyssenKrupp Industrial Solutions wants to focus its naval shipbuilding activities on its German ThyssenKrupp Marine Systems, which has operations in Kiel, Hamburg and Emden.
According to the company, these activities would be highly profitable and were contributing reliably to the company’s earnings. On the other hand, the Swedish subsidiary has generated substantial losses for years, the company says.
“With this sale we will generate a book profit in the low double-digit million euro range,” a company spokeswoman said today.
According to ThyssenKrupp Industrial Solutions, this transaction still needs the approval of the board and supervisory bodies of the ThyssenKrupp Group as well as the Swedish competition authority. The approvals are expected during the coming weeks.
ThyssenKrupp Marine Systems comprises three operating units: submarines, Surface Vessels and Services. Currently the Swedish shipyard ThyssenKrupp Marine Systems, with submarines and naval surface vessels, is managed from Germany as a fourth business unit. It has facilities in Malmö, Karlskrona and Muskö and employs around 900 people.
The German shipbuilding subsidiary is one of the leading European system providers for non-nuclear submarines like the 212A and 214 classes and other naval vessels. With its air-independent Howaldtswerke-Deutsche Werft fuel cell propulsion system, ThyssenKrupp Marine Systems is the world market leader. It employs over 2,500 people. According to the company, its German shipbuilding activities have a high order backlog which secure workload and employment until 2020. ■