Israel has agreed with Thyssenkrupp Marine Systems to develop and produce three advanced submarines for the Israeli Navy in a deal worth 3 billion euros ($3.4 billion), Israel's Defense Ministry said on Thursday.

The parties also signed an industrial strategic cooperation agreement that amounts to more than 850 million euros, the ministry said.

"I would like to thank the German government for its assistance in advancing the agreement and for its commitment to Israel's security," said Defense Minister Benny Gantz. "I am confident that the new submarines will upgrade the capabilities of the Israeli Navy, and will contribute to Israel's security superiority in the region."

The first submarine will be delivered within nine years, according to the agreement, which also includes the construction of a training simulator in Israel and the supply of spare parts.

($1 = 0.8810 euros)

SOURCE: Reuters

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