Germany's prominent shipbuilder, TKMS, secures autonomy and self-reliance
Thyssenkrupp Marine Systems (TKMS), Germany's leading naval shipbuilder, is set to become an independent, publicly listed company following a spin-off from Thyssenkrupp AG. The move, approved by shareholders in August 2025, is aimed at providing TKMS with greater entrepreneurial freedom and financial autonomy.
The new TKMS supervisory board, consisting of 10 members, will include 4 independent representatives to ensure proper governance and independent oversight. This structure aligns with TKMS’s new status as an independent company, expected to be entered into the commercial register by mid-October, with an Initial Public Offering (IPO) to follow immediately [1][5].
Oliver Burkhard, CEO of TKMS, will lead the company, which currently employs around 8,200 people, with shipyard locations in Kiel and Wismar, and other locations including Hamburg, Bremen, and Emden. TKMS has a substantial order backlog of over 18 billion euros and has won orders for submarines from Germany, Norway, Israel, and Singapore since 2021, with a recent order for two more submarines from Singapore for the Indo-Pacific region [6].
The spin-off is also intended to increase the attractiveness for investors due to clearly defined business models, free from conglomerate disadvantages. TKMS has also been awarded the construction of the new German research ship 'Polarstern 2' for deployments under extreme climate and weather conditions, with an order volume of around 1.2 billion euros [7].
Thyssenkrupp AG will retain a majority of 51 percent of TKMS shares through a new holding company. The Krupp Foundation, the largest individual shareholder of Thyssenkrupp AG with a 21 percent stake, is to receive a seat on the TKMS supervisory board [2]. The federal government will have approval and pre-emption rights, and the right to propose a member for the new TKMS supervisory board [8].
However, financial expert Hendrik Schmidt from DWS has criticised the planned management structure, as six out of ten supervisory board members are determined by Thyssenkrupp, making the promised independence initially a journey under supervision [9]. A security agreement is planned between TKMS and the federal government, granting the federal government special information and consultation rights for sensitive activities [3].
TKMS is the world leader in conventionally powered submarines and also builds frigates and corvettes. The independence of the marine division is part of a larger planned corporate restructuring at Thyssenkrupp, with the other four divisions also set to be made independent and opened up for third-party participation in the coming years [10]. The federal government's entry into TKMS remains possible, but not part of the current agreement.
Sources:
- Reuters
- Bloomberg
- Handelsblatt
- Financial Times
- Thyssenkrupp AG Annual General Meeting 2025 Minutes
- TKMS Press Release
- TKMS Press Release
- Handelsblatt
- Financial Times
- Thyssenkrupp AG Annual Report 2024
In the coming weeks, TKMS, as an independently listed company, will have new financial responsibilities and the freedom to make decisions in line with their business strategies. After securing a seat on the TKMS supervisory board, the Krupp Foundation will play a role in ensuring the company's financial stability and growth.
