Germany has taken the first steps towards stripping a top Dutch shipyard of its role in a beleaguered multibillion-euro warship project that has been plagued by delays and spiralling costs.
The country’s military procurement agency on Thursday finalised a memorandum of understanding with Damen — the largest shipbuilder in the Netherlands — after two weeks of talks over its contract to build six new frigates for the German navy, according to two people familiar with the matter.
Under the agreement, Damen will help the German shipyard Naval Vessels Lürssen (NVL) — which is set to be bought by Düsseldorf-based arms giant Rheinmetall, pending regulatory approval — with a six-month period of due diligence. NVL will then decide whether it wants to take over as lead contractor on the project.