Howaldtswerke-Deutsche Werft (often abbreviated HDW) is a German shipbuilding company, headquartered in Kiel. It is part of the ThyssenKrupp Marine Systems (TKMS) group, owned by ThyssenKrupp. The Howaldtswerke shipyard was founded in Kiel in 1838 and merged with Hamburg-based Deutsche Werft to form Howaldtswerke-Deutsche Werft (HDW) in 1968. The company's shipyard was formerly used by Friedrich Krupp Germaniawerft until the end of World War II. History HDW was founded October 1, 1838 in Kiel by engineer August Howaldt and entrepreneur Johann Schweffel under the name Maschinenbauanstalt und Eisengießerei Schweffel & Howaldt (Machine Factory and Iron Foundry Schweffel & Howaldt), initially building boilers. The first steam engine for naval purposes was built in 1849 for the Von der Tann, a gunboat for the small navy of Schleswig-Holstein. In 1850, the company built an early submarine, Brandtaucher, designed by Wilhelm Bauer. It had been intended to build the boat in Rendsburg but Danish forces advanced too close during the First Schleswig War, so construction was moved to Kiel. The first ship built under the company's new name Howaldtswerke was a small steamer, named Vorwärts, built in 1865. Business expanded rapidly as Germany became a maritime power and, by the start of the 20th century, around 390 ships had been completed. In 1892 the company started a subsidiary in Austro-Hungarian Fiume on the coast of the Adriatic Sea. The subsidiary closed ten years later but the yard remains open under the name 3. Maj. With Kiel being one of the two main bases of the Kaiserliche Marine, the shipyard also benefited much from navy maintenance, repair and construction contracts. During World War I the company also built a number of U-boats. By 1937, the company had yards in Kiel and in Hamburg, and was taken over by the Kriegsmarine. During World War II, Howaldtswerke built 33 VIIC U-boats in Hamburg and 31 in Kiel. After the end of World War II, Howaldtswerke was the only major shipyard in Kiel that was not dismantled. The yard flourished during the "economic miracle" of the 1960s, with the construction of freighters and tankers, and again expanded by opening a shipyard in Hamburg. Howaldtswerke merged with Deutsche Werft in Hamburg in 1968, and the company took the new name Howaldtswerke-Deutsche Werft (HDW). Pressure from cheaper competitors in Japan and South Korea caused the closure of the Hamburg yard in 1985. In March 2002, the American financial investor