German Shipbuilder to Court after Damen Wins Billion Euro Navy Contract

Shipbuilder German Naval Yards and steelmaker Thyssenkrupp have complained about the earlier award of a billion-euro contract from the German navy to a Dutch consortium led by Damen Shipyards. The German companies have ‘serious doubts’ about the legality of that decision.

‘After a thorough examination, we have decided to file a complaint against the award decision,’ says a spokesman of the shipyard based in Kiel. ‘We have serious doubts about the legality of the decision and will therefore exhaust all legal possibilities at our disposal.’

German Naval Yards adds to that in a statement on its website that it is ‘thus exercising its right under public procurement law to have the decision reviewed.’

Contract Worth 5.3 Billion Euros

In mid-January it became known that the Damen consortium had won the contract to build four frigates. The construction of the naval vessel MKS 180 involves an amount of 5.3 billion euros. It is the largest German naval purchase ever.

Parliamentary Approval

The naval vessel MKS 180 will be built at Blohm + Voss in Hamburg under the direction of Damen and with the help of the defence and technology group Thales. The government’s decision is not yet final. The German parliament has yet to give its approval.

Jobs at Stake

According to Thyssenkrupp, more than 1000 jobs are at stake due to the failure of the contract. The company also referred to the earlier acquisition of German shipyards in 2004 at the request of the Federal Government. ‘It is now up to politicians to tell us what kind of future they see for the shipyards,’ according to the complainants.

Based in part on information from ANP.

Author: Mariska Buitendijk

Mariska Buitendijk is one of SWZ|Maritime's journalists as well as the magazine's copy editor.