The chief executive of German warship builder TKMS has called for consolidation within the defence industry in a speech published on Monday ahead of the company's annual general meeting.
"If defence capabilities are to be established more quickly, standardisation, industrial consolidation and speed are required," CEO Oliver Burkhard said in a transcript of the speech due to be held during the AGM on February 27.
"Money alone does not build ships," he said, adding that the decisive factor was how quickly industry and clients could act together.
Burkhard said TKMS, which was spun off from Thyssenkrupp and listed on the stock exchange last year, was prepared to play an active role in consolidation in Germany and Europe.
After years of stagnation, mergers and acquisitions activity in the industry is rising. TKMS, in which Thyssenkrupp still holds a majority stake, has made a non-binding takeover bid for its smaller competitor German Naval Yards Kiel, while arms maker Rheinmetall has acquired the defence division of Luerssen shipyard.
(Reporting by Tom Kaeckenhoff, writing by Linda Pasquini, editing by Friederike Heine)