At a roundtable held in Paris earlier this month, the French company Naval Group accused the German TKMS of harming the European submarine shipbuilding industry through its transfer of technology to third countries, arguing that these nations later advanced in manufacturing their own systems for export. These two companies are among the leading players in the European naval industry, frequently competing head-to-head for contracts involving conventionally powered submarines.
The main spokesperson for these accusations has been Guillaume Rochard, who currently serves as Director of Strategy, Partnerships, and Mergers at Naval Group. He stated: “TKMS is a champion in creating new competitors. They have carried out extremely significant technology transfers to Turkey and Korea, two nations that are now in the submarine export market.” Rochard later sought to draw a sharp contrast with the company he represents, emphasizing that Naval Group has been “very careful” with technology transfers to avoid increasing competition.
From these statements, it is clear which two submarine acquisition programs Rochard is referring to: South Korea and Turkey. The focus on these cases is far from random. In the first instance, it is necessary to go back to the early 2000s to understand Naval Group’s concerns. During this period, TKMS provided the South Korean industry—specifically Hyundai Heavy Industries and Hanwha Ocean—with the design and components needed to build Type 214 submarines, with the first two units entering service in 2008.
Currently, with a clear link to the technologies provided by TKMS, South Korea has positioned itself as a major manufacturer of submarines that incorporate a high percentage of domestically produced components. The KSS-III models, featuring advanced AIP technology and vertical launch systems, have not only strengthened the country’s naval capabilities but also secured export contracts, as seen in the case of Indonesia.
A similar situation can be observed with Turkey, which in 2009 signed an agreement with TKMS to acquire six new submarines—also of the Type 214 class, equipped with the aforementioned AIP technology. Their construction was carried out by the local Gölcük Naval Shipyard, paving the way for what would later become the Reis-class submarines of the Turkish Navy, with the first unit being delivered in 2024. Building on the knowledge gained from these projects, Ankara recently announced its intentions to develop and construct its own indigenous submarines, seeking greater autonomy in supplying platforms for its armed forces.
Faced with these strong accusations, TKMS has issued a lackluster response, referring to the classified nature of its agreements and stating that it “sets the benchmark for responsible technology transfer (…) [Our sales are structured so that countries] can deploy and operate our products for any naval mission they need to carry out to defend their country.”
For now, the controversy has already made waves at the highest levels, as France’s Directorate General of Armament (DGA) has announced measures aimed at restricting technology transfers to foreign clients in order to preserve strategic advantages. This was confirmed by Alexandre Lahousse, head of the DGA’s Defense Industry Directorate, who acknowledged that purchasing nations increasingly seek technology transfers but stressed the importance of limiting the freedom with which companies negotiate them to protect French interests.
Images used for illustrative purposes.
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