German navy scraps €18 bn Damen frigate contract, award shifts to TKMS

The German Ministry of Defence announced the cancellation of the €18 billion contract with Dutch shipbuilder Damen for the construction of six F126 frigates after the company failed to meet agreed time‑and‑budget limits and raised risk concerns. The contract is being reassigned to German shipbuilder TKMS, which will build the vessels at a revised estimated cost of €11.6 billion.

Damen, the Netherlands’ largest shipyard, had already received a €270 million bridging loan from the Dutch government due to payment delays and is currently facing a legal trial over alleged large‑scale bribery and violations of EU sanctions related to exports to Russia and other jurisdictions.