Israel signs €430m deal for German patrol vessels

Sa'ar 5 and drilling platform
Sa'ar 5 and drilling platform

Four new corvettes armed with missiles and built by TKMS will defend Israel's gas rigs.

Israel's ministry of defense today signed a €430 million procurement contract with Germany for four new patrol vessels to defend the country's Mediterranean economic waters and offshore gas rigs. The German government will provide a €115 million grant towards the new boats.

The Sa'ar 6 patrol boats will be produced at the ThyssenKrupp Marine Systems (TKMS) shipyards in Kiel. TKMS is also building Dolphin submarines for the Israel Navy. The new boats will be based on the Corvette K-130 and will have an estimated weight of 2,000 tons. The new boats will be equipped with fire control and radar systems, advanced defense missiles, and other systems developed by Israeli defense electronics companies.

The new boats will be at the heart of the Israel navy's defense of Israel's economic waters. In the future this will include surface ships, routine patrol boats, drones, advanced means for gathering real time intelligence, and more. A senior Israeli defense source told "Globes" that the four boats will be delivered to the Israeli Navy within eight years with the first boat delivered by 2019.

The agreement was signed this morning at the Israel ministry of defense headquarters in Tel Aviv by director general General (res) Dan Harel and ThyssenKrupp Marine Systems chairman Andreas Burmester.

The deal will be funded from a special budget approved separately from the defense budget by the government last year. The financing package will be undertaken by Israel Discount Bank (TASE: DSCT), which won an international competitive tender published by the ministry of defense. There were bids from five Israeli banks and three European banks.

The German shipbuilders have committed to undertake NIS 700 million in reciprocal procurements in Israel.

Published by Globes [online], Israel business news - - on May 11, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

Sa'ar 5 and drilling platform
Sa'ar 5 and drilling platform
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