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Shipbuilder Damen claims 4.7 billion from Germany after project cancellation

Shipbuilder Damen claims 4.7 billion from Germany after project cancellation

Dutch shipbuilder Damen is seeking 4.7 billion euros from Germany after the abrupt cancellation of a contract for six naval frigates. The company claims the termination was unexpected and argues that the German government is responsible for the project's delays and rising costs.

Shipbuilder Damen has submitted a 4.7 billion euro claim against Germany following the unexpected cancellation of a project to construct six naval frigates. The German government decided to terminate the contract in June due to significant project delays and substantial cost increases, opting instead to procure eight alternative vessels from domestic manufacturer TKMS.

Damen contends that the decision to cancel was unanticipated, noting that several ship components and systems were already prepared for assembly. The company argues that Germany bears responsibility for the project's setbacks, pointing out that the Berlin government exercised an option to order two additional frigates in June 2024 despite being aware of the ongoing complications. According to correspondence reviewed by Reuters, the requested compensation covers contractually agreed payments and additional damages. The company is currently evaluating whether further claims for losses are justified, while the German Ministry of Defence has yet to issue an official response regarding the financial demand.

Based on reporting by nu. Translated and condensed by LocalHeadlines.

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