Thyssenkrupp experiences initial difficulties

Thyssenkrupp Marine Systems (TKMS) has seen a well-filled order book, despite not being involved in Norway's recent frigate procurement. The Norwegian government has chosen to partner with the UK for acquiring new frigates, procuring Type 26 frigates from BAE Systems.

TKMS had initially expressed interest in the Norwegian frigate procurement, offering a version of the F 127 frigate tailored to Norwegian needs. However, the company did not participate in the tender and did not submit an offer. The Type 26 frigates, which are similar to those delivered to the British government, have the same technical specifications.

The F 127, primarily designed for air defense, differs from the anti-submarine warfare frigates that Norway is seeking. TKMS is currently building four submarines for Norway, with two more pending a final decision.

Recently, there has been a setback in TKMS's spin-off, which has been a significant driver of Thyssenkrupp's stock momentum. Despite this, the recovery of Thyssenkrupp's stock has been observed, with last week showing significant recovery. The upcoming Initial Public Offering (IPO) of TKMS's marine division remains a key driver of Thyssenkrupp's stock, although the client and the planned date for this IPO have not been explicitly mentioned in the retrieved information.

The Norwegian government's decision to partner with the UK for frigate procurement has no negative impact on the financial and strategic development of TKMS. In early 2022, German Defense Minister Boris Pistorius had publicly suggested cooperation during a visit to Norway.

Despite existing issues in the steel business, Thyssenkrupp's stock could continue to rise in the short term, with double-digit prices possible in the coming weeks. This optimistic outlook is attributed to the upcoming spin-off of TKMS and the recovery of Thyssenkrupp's stock.

In conclusion, while TKMS is not directly involved in the Norwegian frigate procurement, the company's marine division remains a significant player in the global defence industry, with ongoing projects and a highly anticipated IPO on the horizon.