Italian, German Shipbuilders Partner for Philippine Navy Sub Program Bid

April 17, 2025 7:04 PM
U212 submarine concept

An Italian-German shipbuilding partnership is pitching submarines to the Philippine Navy under the latest bid in Manila’s longstanding attack boat acquisition program.

Fincantieri, Italy’s largest shipbuilder, signed an Industrial Cooperation Agreement with German firm ThyssenKrupp Marine Systems on Wednesday. According to a Fincantieri press release, the collaboration is under “a broader strategic partnership to provide the Philippine’s Navy with advanced submarine capabilities solutions.”

“As part of the Horizon III military modernization initiative, the Philippine Navy aims to enhance its archipelagic defense by acquiring cutting-edge weapon systems. In particular, the introduction of submarines would be a game-changer in securing territorial waters, especially in the South China Sea,” stated a Fincantieri press release.

The two shipbuilders are offering the U212-class attack boats, which they previously cooperated on in an Italian Navy program that is slated to deliver four NFS and two larger NFS EVO variant submarines. It is unclear which variant is being offered to the Philippines.

Fincantieri claimed that the U212 NFS would provide the Philippine Navy a “significant strategic advantage” through the attack boat’s air independent propulsion technology, Amanox non-magnetic steel and other stealthy characteristics.

While Manila began its search for submarines since the beginning of the Revised Armed Forces of the Philippines Modernization Program in 2012, recent events in the South China Sea with Beijing have led to a renewed push for naval procurement. Horizon 3, the last phase of the modernization program, has been modified to better suit Philippine requirements and challenges. The plan also addressed the lack of procurement in the last 13 years, coming in at a budget of $34 billion and lasting into the 2030s.

Under this last phase, the Philippine Navy’s Submarine Acquistion Program requirement seeks two attack boats, as well as supporting maintence and basing infrastructure, within a budget of $1.7 billion.

Philippine civilian and Navy leadership – including President BongBong Marcos – have voiced their aspirations for submarines. However, officials have also noted the high price tag and the more relevant capabilities that could be acquired with the money. Incidents in the West Philippine Sea, Manila’s designation for its exclusive economic zone in the South China Sea, has led the country’s Navy to prioritize frigates and unmanned surface vessels.

“I hope we can have submarines in the future, but presently it is not a priority. We have to beef up first our submarine detection systems, we have to beef up first our anti-submarine capability, our sensors, and even naval shipyards that should be able to maintain these submarines and our ships,” said former Flag-Officer-in-Command, Vice Adm. Toribio Adaci in a Naval News interview.

Fincantieri and ThyssenKrupp Marine Systems join France’s Naval Group, Spain’s Navantia and South Korea’s Hanwha Ocean in one of the most expensive Philippine military procurement projects to date. The program’s leading contenders, Naval Group and Hanwha Ocean, have been backed by their respective home nations via financing plans to appeal to the Philippines’ limited defense budget.

Aaron-Matthew Lariosa

Aaron-Matthew Lariosa

Aaron-Matthew Lariosa is a freelance defense journalist based in Washington, D.C.

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