Germany has cancelled a multibillion-euro order for six new F126 frigates from a Dutch shipmaker, the Defence Ministry said on Wednesday, citing delays and rising costs.
Main contractor Damen Schelde Naval Shipbuilding (DSNS) was due to deliver the first frigate in mid-2028, with the rest to follow by 2033. However, the company has been unable to meet the agreed timeframe and budgetary requirements, the ministry said.
The ministry said it had considered switching to a new contractor but ultimately decided against it.
Germany has massively boosted defence spending in the wake of Russia's invasion of Ukraine, as it seeks to upgrade its armed forces and increase contributions to NATO.
In a major blow to those efforts, a joint multibillion-euro fighter jet project with France and Spain dubbed FCAS was scrapped earlier this month after years of preparations because Airbus and Dassault were unable to agree on the construction.
The F126 project, launched in 2020, had come to a virtual standstill last year.
Total costs were initially estimated at some €10 billion ($11.3 billion), with some €2.3 billion spent so far.
Should the project be continued with another contractor, total funding is expected to rise to more than €18 billion, according to the ministry.
In March, Germany decided to acquire eight Meko A-200 DEU frigates, primarily intended for sea-based anti-submarine warfare. The ministry reiterated those plans, describing them as a national priority and of the utmost importance within NATO.
