Other shipyards that were intended to participate in Seehund production were Cantieri Riuniti dell'Adriatico at Monfalcone, Italy, and Klöckner-Humboldt-Deutz at Ulm. However, Dönitz would not consent to the production of the Type XXIII submarine being held up for Seehund construction, while shortages of raw material, labor and transport problems, and conflicting priorities in Germany's economy all combined to reduce Seehund production.
The production of Seehund submarines faced challenges due to a lack of raw materials, workforce availability, transportation difficulties, and competing demands in Germany's economy.