German Naval Yards Kiel and Lürssen shipyards announced plans to form a joint venture on Thursday.
Earlier this week, owners of both shipyards laid the foundation for a final JV agreement.
"Lürssen intends to establish a long-term cooperation in naval shipbuilding with German Naval Yards Kiel. The existing military and naval surface shipbuilding activities are to be contributed into a joint company and led by Bremen-based Lürssen Group," German Naval Yards said in a statement today.
The objective of the combination is to improve the structure of the German shipbuilding industry and to bolster its efficiency and sustainability. This week, the two shareholding families have successfully laid the foundation for a definitive contractual agreement for the joint company. The proposed combination remains subject to approval by the relevant merger control authorities.
In addition to the construction of highly innovative and technologically advanced naval vessels, this also includes the functional integrity of such vessels over the entire life cycle.