Rheinmetall Seeks €12 Billion to Take Over German Warship Project

German defense company Rheinmetall is seeking around €12 billion from the government to take control of the troubled F126 frigate programme, according to reports. The proposed deal would significantly raise the total cost of building six warships to nearly €14 billion, reflecting delays and rising expenses in the project.

The company’s naval division has reportedly outlined its terms after months of evaluation, potentially replacing Dutch shipbuilder Damen, which had been leading the programme. The revised plan includes an inflation adjustment clause and pushes the expected delivery of the first vessel to 2032—about four years later than initially scheduled.

Meanwhile, Germany is also considering alternative options, including purchasing smaller MEKO A-200 frigates from Thyssenkrupp Marine Systems at roughly €1 billion each. Analysts suggest this move could strengthen Berlin’s position in negotiations as it seeks to manage costs and timelines for its naval modernization efforts.

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