ThyssenKrupp Marine Systems (TKMS) has reached an agreement with the defence materiel organisations of Germany and Norway for the procurement of six Type 212 Common Design (CD) submarines.

The agreement follows years of negotiations. All parties involved in the project have approved the technical content and contractual terms.

Under the agreement, Norwegian Defence Materiel Agency (NDMA) will purchase four submarines and Germany’s BAAINBw will receive two from thyssenkrupp.

TKMS was selected in 2017 as the preferred bidder for the project through the signing of a strategic, maritime cooperation. The total project cost is valued at $5.2bn.

thyssenkrupp Marine Systems CEO Rolf Wirtz said: “This order represents the most important project for thyssenkrupp Marine Systems for the next decade and will secure employment, not only in Kiel, for years to come.

“The contract, which has yet to be signed, contains tough conditions for us. Nevertheless, for now we are happy to take this big step towards signing the contract and thank our customers for the trust they are placing in us.”

The new submarines are based on Type 212A submarine design, which will be developed further by incorporating advanced technologies. Type 212A vessels are already in service in Germany and Italy.

The first submarine is scheduled to be delivered to the Royal Norwegian Navy in 2029 and the first two submarines for the German Navy are planned for 2031 and 2034.

The transaction is yet to receive German Parliamentary approval, which is expected to be signed this summer.

Kongsberg Defence & Aerospace president Eirik Lie said: “This is a new important milestone in the collaboration between the two nations with an industrial perspective.

“Together we will make next generation world class submarines and combat systems, and the agreement will lead to new innovations and value creation, not only for KDA but also for our subcontractors and other medium-sized Norwegian companies in the future.”