Thyssenkrupp: From Steel Empire to Submarine Powerhouse in an Age of Geopolitical Tension

Thyssenkrupp’s story begins in the coal and steel crucible of 19th-century Germany, where two industrial dynasties—Krupp and Thyssen—rose to define the German industrial age. By the time they merged in 1999, they had already helped arm empires, fuel railroads, and build the infrastructure of modern Europe. The merger created an industrial behemoth with global ambitions: a €40B conglomerate spanning steel, elevators, car parts, shipbuilding, and machinery.

For decades, the company struggled under its own weight. Failed steel expansions in the U.S. and Brazil burned billions. Management turned over repeatedly. In 2020, Thyssenkrupp sold its most profitable division—elevators—for €17.2B to private equity, a move that kept it solvent but left behind a weaker, less defined core.

But in an unexpected twist shaped by rising geopolitical tensions, Thyssenkrupp has reemerged not as a steel or elevator giant—but as a major player in Europe’s defense industry. Through its subsidiary, Thyssenkrupp Marine Systems (TKMS), the company has become one of the world’s leading builders of conventional submarines and naval vessels. TKMS supplies advanced diesel-electric subs like the Type 212CD to Germany and Norway, the Type 218SG to Singapore, and the Dakar-class to Israel. It also partners with Kongsberg and Diehl on next-generation missile and defense tech.

With Europe rearming post-Ukraine invasion and Germany pledging €100B to its military overhaul, TKMS is in high demand. As of 2025, it holds a record €18B order backlog and is being eyed for partial spin-off—49% to shareholders, with Berlin considering a direct stake to anchor its strategic role.

What began as a steel-and-coal empire is now a central node in Europe’s defense renaissance. Thyssenkrupp, battered but alive, is once again essential—this time not just to industry, but to sovereignty.