Damen wants €4.7 billion compensation from Germany for cancelling frigate order

Dutch shipbuilder Damen is seeking nearly 4.7 billion euros in damages from the German government for canceling an order of six frigates. This is according to a letter from the company’s lawyer reviewed by NOS.

It was previously known that Damen wanted compensation. In late June, German Defense Minister Boris Pistorius canceled the order of six F126 frigates, which was reportedly very unexpected for Damen. Germany is now ordering eight other frigates from German builder ThyssenKrupp Marine Systems.

In June, when Pistorius ended the Damen’s role for good, he said construction risked seeing years of delays and that costs were spiraling. In the letter addressed to Pistorius, Damen said it holds the German government responsible for the delays. It also accused Berlin of breach of contract.

A few months back, the Belgian government was also reported to be considering withdrawing an order for two frigates from the shipbuilder. Belgian Defense Minister Theo Francken has said the delivery is taking too long as the costs are rising.