The Israeli Ministry of Defence (MoD) has agreed to purchase three new Dakar-class submarines from Germany’s thyssenkrupp Marine Systems.

The MoD said that the technical content and contractual provisions have been agreed following lengthy talks involving all parties. The deal is worth $3.4bn (€3bn).

thyssenkrupp Marine Systems CEO Dr Rolf Wirtz said: “We, as thyssenkrupp Marine Systems and Germans, are honoured and proud to continue the long cooperation, spanning decades, with the Israeli Ministry of Defence and the Israeli Navy. The new class of submarine will provide Israel with the most advanced capabilities, based on an innovative, cutting-edge technology.

“This agreement demonstrates the deep commitment of thyssenkrupp Marine Systems to guarantee Israel’s long-term security. It was signed after a thorough and extensive groundwork process, and I would like to thank our partners in the Ministry of Defence and the Israeli Navy for their commitment and professionalism.”

The new series of submarines will be designed to meet the needs of the Israeli Navy. The three new Dakar-class will replace the three Dolphin-class boats constructed in the 1990s.

In addition, thyssenkrupp Marine Systems and its suppliers will enter discussions prior to the contract becoming effective.

Dr Rolf Wirtz added: “In the last joint project with the Israeli Navy, the SA’AR-6 project, we delivered four corvettes on time and within budget. In this respect, we are very much looking forward to working with our longstanding partner again.”

In 2019, thyssenkrupp announced a €250m investment in Kiel to prepare the shipyard to take on construction of conventional submarines in future.

As part of this investment, a new shipbuilding hall, a second outfitting line, a new stage system, and more will be built on the shipyard.

The company noted that works on a new shipbuilding hall and a fuel-cell production facility have already started.