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Deals

ThyssenKrupp wins submarine order from Singapore

The headquarters of ThyssenKrupp Steel Europe AG are seen in Duisburg November 29, 2013. REUTERS/Ina Fassbender

DUESSELDORF/FRANKFURT (Reuters) - Germany's ThyssenKrupp TKAG.DE said on Monday it had won an order from Singapore for two customized submarines to be built at its Marine Systems unit in the northern German city of Kiel.

An industry source said the contract was likely to be worth more than 1 billion euros ($1.36 billion).

ThyssenKrupp said Singapore Technologies Electronics, a unit of defense conglomerate Singapore Technologies Engineering Ltd STEG.SI, would co-develop the submarines' tailor-made combat system with Atlas Elektronik GmbH, a joint venture of ThyssenKrupp and European aerospace group EADS EAD.PA.

ThyssenKrupp’s Marine Systems business makes non-nuclear submarines and high-end naval vessels. The company said in its annual financial report published last week that it saw a number of promising naval shipbuilding projects around the world, particularly in the Asia-Pacific region.

Earlier on Monday, the company confirmed a report that delivery of the first of four new ships ordered by the German Navy would be delayed due to problems with a flame-retardant coating.

Reporting by Tom Kaeckenhoff and Maria Sheahan; editing by Tom Pfeiffer

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