FRANKFURT, April 15 (Reuters) – Warship makers TKMS and Spain’s state-owned Navantia have signed ‌a memorandum of understanding to explore ‌cooperation on naval projects, including the potential production of ​TKMS submarine designs at Navantia’s shipyards in Spain, the companies said on Wednesday.

The agreement covers potential projects in Europe, within NATO and ‌worldwide, and comes ⁠as both companies cite growing demand for naval vessels and bottlenecks ⁠in shipyard capacity and technological resources across Europe.

• Parties agreed to initiate management-level discussions in ​full compliance ​with competition and ​export control regulations

• ‌The aim of talks is to explore how closer cooperation can help realise projects “more efficiently, quickly, and cost-effectively”

• Navantia is wholly owned by SEPI, a Spanish state holding company ‌attached to the Ministry ​of Finance, and employs nearly ​6,000 people ​in Spain

• TKMS, which is majority-owned ‌by German industrial firm ​Thyssenkrupp, employs ​more than 9,100 people at shipyards in Kiel, Wismar and Itajai, Brazil

• “It is ​crucial that ‌European industrial companies collaborate more closely,” said ​TKMS CEO Oliver Burkhard

(Reporting by Christoph ​SteitzEditing by Linda Pasquini)