Damen Group in the game for a billionth contract for the German Navy

In Germany there is a tender procedure for the construction of four new frigates of the MKS 180 type with an option for two more. The Dutch shipyard group Damen, which formed a consortium with German partner Bloh + Voss, promises Berlin to build ships in Hamburg and new jobs.

The game is a contract worth about €3.5 billion. This is the largest maritime project currently being implemented in the Federal Republic of Germany. Initially, the following entities were involved: ThyssenKrupp Marine System and Lürssen, Damen Shipyards and Blohm + Voss and German Naval Yards. The latter company cooperates with the British BAE Systems Group.

It's about building modern multitasking submarines for the German Navy. According to the German press and communications of the federal offices, ships will be able to carry out classical combat tasks, as well as perform missions of a different character. These include humanitarian aid, combating piracy, evacuation and monitoring of marine areas. The new German frigates are to be armed with anti-ship missiles and a missile anti-aircraft defense system up to 25 km in range. The units will probably be equipped with cannons or rocket launchers to combat targets on land. In addition, MKS 180 will carry propellers and rigid boats. According to the project, the crew of each frigate will have about 180 people.

Germany wants the first frigate of the new type to be delivered in 2023. However, the purchase case was complicated in March this year when the consortium of TKMS and Lürssen was excluded from participating in the tender procedure. The decision was made by the German arms, information technology and exploitation office, which is subject to the Ministry of Defence. According to the media, the justification for the decision is about IT security and too high offer costs.

Now the Damen group tempts German decision-makers and promises that if they choose to offer the Damen and Blohm + Voss consortium, the four frigates of the MKS 180 will be built at the shipyard in Hamburg. Such a record was included in the consortium agreement. Damen stresses that this will allow for the maintenance of hundreds of jobs in the German shipbuilding industry and generate 150-200 new jobs for specialists. In turn, German trade unions fear that most of the money spent by the government on new ships will be transferred outside Germany and appeal to the ruling coalition for changes in public procurement law. The German media emphasise that the exclusion of the TKMS and Lürssen consortium from the proceedings significantly increased the chances of the Damen Group and Blohm + Voss. The latter company is the only German player to remain in the game as German Naval Yards is owned by Lebanese investor. The German Ministry of Defence's decision to elect a contractor is to take by the end of this year.

Signature: