The head of the Israeli Navy's combat systems division has confirmed that Germany's HDW is building submarines for Egypt.
"We know that countries around us are strengthening their capabilities. Egypt signed an agreement with Germany for the purchase of advanced submarines, which will be built from the same plans as our submarines," Colonel Sasi Chodeda said during a conference, the Israel Defence Forces (IDF) website reported on 17 March.
Egyptian Navy commander Rear Admiral Osama Ahmed el-Gundi said in August 2012 that Egypt was negotiating the purchase of two HDW Type 209 submarines. He was responding to an Israeli newspaper report that claimed Israel was trying to pressure Germany into rejecting the deal.