Germany has canceled its F126-class frigate program, and Damen, the program’s Netherlands-based prime contractor, announced that it is preparing to seek €4.7 billion in compensation from Germany following the decision…
The German Federal Ministry of Defence halted the program, which covered the construction of 6 F126 frigates valued at approximately €8 billion, after it became clear that the ships could not be completed on the planned schedule and that costs would exceed projected levels.
Incompatibilities between the design and production software developed by Damen and the systems used by the German side are estimated to have contributed to the delays.
Germany considered transferring the contract to Naval Vessels Lürssen (NVL), a Rheinmetall subsidiary, but the option could not be pursued due to a high bid and intellectual property issues.
Arguing that Germany breached the contract, Damen is preparing to seek €4.7 billion in compensation.
Of the 6 frigates ordered under the €8 billion contract, 4 were ordered in 2020 and 2 in 2024.
Before the cancellation, the frigates had been planned for delivery to the German Navy starting in 2028…