TKMS commissions Valbruna ASW to supply non-magnetic submarine steel to support the Canadian Patrol Submarine Project (CPSP)

Press Release

The order is intended to accelerate the certification process for non-magnetic submarine steel.

It is based on a cooperation agreement for the smelting and production of non-magnetic submarine steel.

This combines TKMS' global submarine expertise with Valbruna ASW's extensive experience in stainless steel smelting, metallurgical engineering, and materials processing.

---

TKMS has placed an initial order for approximately 70 tons of non-magnetic submarine steel with Valbruna ASW Inc., a company of the Acciaierie Valbruna Group and a global manufacturer of specialty stainless steels and nickel alloys. The provision of materials and the auditing of the supply chain are intended to help the Canadian subsidiary obtain classification according to the requirements of the German Institute for Defense Material and Production Technology (WIWeB).

Both companies have also signed a cooperation agreement aimed at strengthening industrial collaboration in advanced submarine programs. To support Canada's CPSP submarine program, the agreement enables both parties to explore, develop, and implement cooperation in the smelting and production of the non-magnetic submarine steel required for modern submarine platforms.

"TKMS places great importance on strong partnerships with leading industrial suppliers capable of meeting the demanding material requirements of next-generation submarine platforms," ​​says Thomas Keupp, Chief Sales Officer at TKMS. "Through this agreement with Valbruna ASW, we are strengthening our collaboration on critical materials for submarine applications while exploring opportunities to support Canada's future submarine program."

As part of the collaboration, the parties will evaluate how Valbruna ASW can obtain the qualification to produce this specific steel grade in accordance with applicable international naval standards. This includes fulfilling the technical requirements of the WIWeB and the classification society DNV, as well as complying with the construction regulations 1050 issued by the Federal Office of Defense Technology and Procurement for ships of the German Navy.

“Valbruna ASW Inc. is proud to contribute its core expertise in stainless steel melting and processing, as well as metallurgical engineering, to this vital Canadian program, thereby playing its part in strengthening national supply chains and developing talent,” said Tiziano Briozzo, General Manager at Valbruna ASW. “We are confident that by signing this Memorandum of Understanding, we can expand our trusted partnership with TKMS from the European to the global level, leveraging our combined expertise and collaborative progress for the benefit of the CPSP. Furthermore, we are actively working to deepen our collaboration in submarine steel production, with the goal of establishing this capacity in Canada for the long term.”

---

About Valbruna ASW

Valbruna ASW Inc. is a leading specialty steel manufacturer in Welland, Ontario, with a history dating back to 1918. Today, the plant is the only steel mill in Canada capable of producing stainless steel and nickel alloys with improved machinability, heat resistance, and corrosion resistance, offering a unique combination of manufacturing capabilities for carbon steel, stainless steel, and specialty steels. Since 2019, Valbruna ASW has been part of the Italian Valbruna Group, a market leader in the production of long products made from stainless and specialty steels. Annual production of 300,000 tons is vertically integrated, from scrap to distribution, across four production facilities and a global sales network of 43 offices, employing 2,842 people. For more information, visit: www.valbrunaasw.ca

---

Noah Note: This is seperate of TKMS agreement with Finkl Steel. Valbruna was actually my go-to for a partner for a long time because they actually have the facilities and capacity to produce at least some Amanox steel. I was surprised they were left out, but behold! They make a surprise appearance at the last moment.

This is pretty significant. Not only is TKMS commiting to supporting Valbruna, but they're actually taking the step of contracting them to provide an initial batch to try and fast-track their WIWeB certification. You don't just do that out of good will. You not only have to be confident that they can deliver already, but also pretty damn confident that you're gonna win.

Building out this kind of supply chain is difficult. Building out a supply chain for 1.3964 especially, a kind of steel in the quality and quantity demanded of submarine construction, especially modules, which is something we just don't really do here was always going to be a major challenge for TKMS.

That doesnt mean they've solved it, but this is a significant move to make before you even know if youre the preferred supplier, let alone a proper contract. It's a move that tells me TKMS is already looking past the competition.