Germany scraps F126 frigate contract due to delays, opts for eight smaller vessels from TKMS to modernise navy.
BERLIN: Germany on Wednesday scrapped a multibillion-euro order for six warships, citing delays at the Dutch shipyard tasked with building them, and said it would purchase eight smaller vessels instead.
The move spells a setback for Europe’s biggest economy as it has been rapidly building up its armed forces to bolster its role in NATO and deter a hostile Russia.
Germany had originally ordered the F126 anti-submarine frigates from the Dutch group Damen Navel.
But the defence ministry said Wednesday that it “decided not to proceed with the construction of a total of six F126-class frigates. This is in reaction to the significant delays affecting the project.”
It will now order eight smaller ships from the German contractor TKMS instead, the ministry said.
The F126 contract had been widely expected to go to defence giant Rheinmetall after its CEO Armin Papperger told reporters last year that the firm was in talks to handle the work.
Media reports that the F126 order would be scrapped sent Rheinmetall shares down about 17% on Wednesday, marking their largest intra-day fall in over a year.
