Kiel's Thyssenkrupp Marine Systems (TKMS) is looking to intensify its operations. This includes a potential union between TKMS and Atlas Elektronik, the Thyssenkrupp division specializing in maritime electronics, as confirmed by TKMS head Oliver Burkhard in a private interview following a management gathering, made available to German news outlets. It's crucial to avoid exploiting one division over the other. "We aim to safeguard the power of unique cultures and generate even more synergy," Burkhard explained.
This venture demands a measured and professional approach, the CEO stressed, underlining the need for full team involvement. "One thing is for certain: the sooner we instill clarity for our employees, customers, and future stakeholders, the better," Burkhard asserted, pledging to implement initial changes by September 2024.
"We're not a closed operation," Burkhard acknowledged the shipyard's current situation. "We're fragmented and still carry far too much inefficiency. We will subject all our units to rigorous assessment and adopt the best from all worlds – without pandering to everyone and becoming arbitrary," Burkhard stated, envisioning a unified company renowned for its technological leadership in the industry.
At Thyssenkrupp's annual press conference in November, Burkhard underscored the importance of TKMS's independence. He envisions further growth prospects for the Kiel shipyard due to escalating global demand and increased defense budgets.
TKMS upholds its ambition for independence "because it paves the way for securing the necessary resources for TKMS's appropriate and aggressive advancement in Marine Systems," Burkhard elaborated in the interview. However, he emphasized that TKMS shouldn't wait until it is actually independent.
TKMS's strategy remains focused, with Burkhard emphasizing that the company will only engage in profitable ventures and participate in markets where it competes effectively.
Thyssenkrupp Marine Systems (TKMS) and Atlas Elektronik merged in December 2005 – not a future plan, but an existing union. Here are details on the deal and its impact:
Timeline: - December 2005: Thyssenkrupp and EADS (now Airbus) offloaded Atlas Elektronik to TKMS and EADS, marking a significant consolidation in the European defense industry.
Details: - Background: The merger was a response to the quest for greater efficiency within the European defense sector – a trend prompted by the merger of U.S. giants like Boeing and McDonnell Douglas in 1997, which put pressure on European companies to consolidate. - Impact on Defense Industry: The merger fortified TKMS's offering in the naval systems market, granting it a wider range of capabilities and technologies. This consolidation helped TKMS to better compete with major global defense contractors.
Potential Impact: - Competitive Advantage: The acquisition of Atlas Elektronik by TKMS enriched TKMS's competence in naval systems, including sonar, communication, and other electronic systems. This bolstered TKMS's standing in the global defense market, particularly in Europe. - Market Position: The merger positioned TKMS as a more formidable player in the European defense industry, capable of delivering sophisticated naval systems and technologies. This move was integral to formulating a stronger, more integrated, and competitive European defense sector.
