Germany is reportedly set to abandon a delayed multibillion-euro project to build F126 frigates, a decision that could significantly impact Rheinmetall's anticipated largest contract. Defense Minister Boris Pistorius and other officials have informed industry representatives and senior lawmakers of their intention to stop the construction of six F126 frigates, according to reports citing sources familiar with the matter. This reversal comes after over €2 billion had already been invested in the project since the order was placed in June 2020.
Instead of the F126 frigates, Germany plans to purchase eight smaller MEKO A-200 frigates from rival warship builder TKMS. The F126 frigates were designed to be large, 166-meter warships with a displacement of 10,500 tonnes, while the MEKO A-200 frigates are smaller, measuring 120 meters and displacing 4,200 tonnes. The estimated cost for eight MEKO A-200 frigates is around €12 billion, plus an additional €700 million for services, significantly less than the estimated over €15 billion (plus €1.4 billion for supplementary services) for the F126 project if Rheinmetall's subsidiary, NVL, continued.
Rheinmetall was poised to sign a contract to take over the F126 frigate program from Dutch shipbuilder Damen in the second quarter, with CEO Armin Papperger having expressed confidence last month. The company had acquired Naval Vessels Lürssen (NVL) earlier this year, positioning itself to lead the F126 project, which executives expected to be worth approximately €12 billion. This potential cancellation marks a significant setback for Rheinmetall's ambitions in naval shipbuilding and its efforts to expand beyond its traditional land systems business. The F126 frigates were capable of striking targets both above and below water.
