The Chinese Navy's Rearmament Boosts Domestic Shipbuilding Industry

Reference News Network, November 5 According to the French newspaper Le Monde's website on November 2, the strategic shift of the German military supports the naval rearmament, aiding two domestic shipbuilding giants, ThyssenKrupp Marine Systems (TKMS) and Rheinmetall, to actively enter the international market.

In Kiel, a city with a population of only 248,000, the long-declining shipyard has experienced a historic revival thanks to the surge in global military orders. Here, as the successor to the Kiel shipyard, TKMS focuses on conventional submarines and frigates, now gaining unprecedented exposure internationally. A large number of new orders have followed, making it a benchmark for German naval defense enterprises.

The German Metalworkers' Union pointed out at the end of August that by the end of October 2027, all shipbuilding bases in Germany will add 1,700 jobs, with the workforce expected to grow by 10%.

In 2023, the German Navy released a strategic document titled "German Navy 2035 and Future Goals," which was updated in 2025, detailing the fleet size the Navy plans to establish by 2035, including frigates, light frigates, minehunters, submarines, and autonomous combat systems.

Sebastian Bruns, a former researcher at the Institute for Security Policy at Kiel University and an expert on naval issues, believes that this is not only a large-scale rearmament plan but also a break from Germany's decades-long military tradition. Since the end of World War II in 1945, the German Navy has largely been accustomed to delegating strategic decision-making to others, especially NATO. Now, with an unprecedented consensus of interests among the German military, political, and industrial sectors, the German Navy openly declares its ambitions, and all parties are eager to seize the opportunities in military exports.

Two leading companies have emerged: the rapidly expanding traditional shipbuilding company TKMS and the army equipment giant Rheinmetall, which has recently entered the shipbuilding sector. The turning point came in June this year when the German Ministry of Defense decided to terminate the F126 project. This project was commissioned six years ago to the Dutch Damen Shipyards Group to build six large frigates.

The official reason given was delays in the schedule and cost overruns. The cancellation of this project greatly benefited TKMS. After the large frigate construction plan was scrapped, the German government turned to procure eight small frigates from the company. This is the largest surface vessel project in the company's history.

The halt of the F126 project had a negative impact on Rheinmetall, but it did not lose heart. It acquired the Lüürsen Naval Shipbuilding Company to gain shipyard resources and expertise, expanding its business footprint overseas. (Translated by Wang Zhongju)