Concern ThyssenKrupp decided to sell the "daughter" for the production of submarines

 German ThyssenKrupp is going to sell the division for the production of ships and submarines

A tender for the acquisition of a division of ThyssenKrupp may be announced as early as April. Among the interested parties there are private investment companies, writes FT

One of the largest industrial concerns in Germany, ThyssenKrupp, has returned to plans to sell its division specializing in the production of submarines and marine electronic systems, writes the Financial Times, citing a letter that the company sent to employee representatives on the supervisory board.

Three sources of the publication close to potential buyers said that the tender for the acquisition of the ThyssenKrupp division is expected to be announced after Easter (celebrated this year in Germany on April 10). There are private investment companies among the interested parties.

The article does not name the unit in question. The company includes more than two dozen diversified enterprises. The production of ships, submarines, and marine electronic systems is carried out by the "daughter" of the concern - ThyssenKrupp Marine Systems follows the following from the data on its website. It also states that the company provides a full range of services "from naval shipbuilding, from design, development, and production to control systems and weapons deployment." She also has her own virtual training program for ships and submarines.

The deal, the FT writes, is likely to come under close scrutiny from German authorities as Berlin seeks to increase defense production.

ThyssenKrupp declined to comment.

The division to be put up for sale includes shipyards in Kiel in northern Germany. In addition, in 2022, the company acquired a shipyard in Wismar amid expectations of new submarine orders from the German government.

The FT notes that amid the conflict in Ukraine, European interest in acquiring businesses in the defense sector has grown as European governments increase military spending. In 2021, ThyssenKrupp won a contract to supply four vessels to Norway and two to Germany. In 2022, the company's earnings before interest and taxes amounted to €32 million.

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The company, originally a steelmaker, has suffered losses for years trying to cope with slowing demand from the auto industry for its steel, writes the FT. Now ThyssenKrupp is in the final stages of debt restructuring. In recent years, it has sold a number of its enterprises, including the production of elevators for €17 billion.