In a statement on Thursday, Israel’s Defense Ministry said, it has signed an agreement with Germany’s Thyssenkrupp Marine Systems to develop and produce three advanced submarines for its Navy in a deal worth $3.4 billion (3 billion euros).

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

“I would like to thank the German government for its assistance in advancing the agreement and for its commitment to Israel’s security,” said Israeli 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.”

According to the terms of the contract, the first submarine is scheduled to be delivered within nine years. The Contract also covers the cost of building a training simulator in Israel as well as the supply of spares.

($1 = 0.8810 euros)

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