Israel has inaugurated its first facility dedicated to manufacturing submarine components, a move that marks a significant expansion of the nation’s defense industrial base.
Built through a partnership between Germany’s TKMS and Israel’s Elbit Systems, the new production line will fabricate underwater structural parts using Glass Reinforced Polyester, a material traditionally sourced abroad.
Located in northern Israel, the plant is part of TKMS’ industrial cooperation obligations under offset procurement arrangements and is intended to strengthen domestic capability for advanced naval component production.
Israeli defense officials said producing submarine structures locally enhances Israel’s ability to support both domestic and international submarine programs, reduces reliance on foreign suppliers, and contributes to regional economic growth through new jobs and industrial infrastructure.
“The establishment of the facility represents a significant milestone in the development and expansion of Israel’s defense manufacturing base and reflects a broad investment in advanced infrastructure and industrial innovation,” Ze’ev Landau, Head of the Directorate of Production and Procurement at the Ministry of Defense, said.
Elbit, meanwhile, highlighted that the facility will expand their underwater product portfolio and lay the foundation for broader technological cooperation with TKMS.
Israel’s Defense Manufacturing Facilities
Israel’s defense and technology sectors have seen several new or expanded manufacturing facilities in recent years.
In November 2025, Kratos Defense & Security Solutions opened a new facility in Jerusalem for its Microwave Electronics Division, featuring clean‑room assembly and testing space to produce high‑performance microwave and RF technologies for missiles, radars and satellites.
In 2024, TechMer inaugurated a modern production plant in Ashkelon’s southern industrial zone to manufacture advanced military command shelters and mobile tactical communication systems.
Beyond dedicated defense manufacturing, a major new deep‑tech semiconductor plant broke ground in November 2025 in Ashkelon’s Tera Park. Backed by a significant investment from Canadian firm Awz, this specialized chip facility is designed to produce next‑generation III‑V compound semiconductors critical for AI, quantum, and strategic communications applications.
