Germany wants to save its F126 super-frigate project, which faced significant delays, and Rheinmetall defense concern agreed to take on this matter, which may become program general contractor, to be implemented by Naval Vessels Lürssen naval systems division.
Despite such plans, Rheinmetall is not yet officially proclaimed F126 frigate project contractor, and after six months negotiations continuing from last year, conditions under which concern is ready to take on these warships' construction became known for first time, as Financial Times reports.
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These conditions are mildly speaking quite ambitious — Rheinmetall requested as much as €12 billion for building six F126 frigates, included indexing and inflation clause in proposal and promises to deliver first frigate in 2031-2032, but in case BAAINBw (Bundeswehr Federal Office for Equipment, Information Technology and In-Service Support) agrees to certification and project approval concessions.
So far unknown whether these were starting conditions or they came to them as result of half-year debates and actually Rheinmetall's initial requirements were even more grandiose. For now everything appears sides are unwilling to concede to each other.
At the same time, German Chancellor Friedrich Merz hopes F126 frigate project will nevertheless succeed in being implemented, while German defense department emphasized negotiations continue, and as Reuters notes, defense ministry is consulting with two large defense companies, while who is second is not reported. So it turns out that so far any variants are not excluded continuing cooperation with Rheinmetall, agreement with another company or generally abandoning further work.
At the same time, as of today Germany has already invested considerable funds in F126 frigate program — specifically €2 billion. Including sum Rheinmetall wants, building six ships will cost as much as €14 billion — in rough calculation €2.3 billion per frigate. This without considering same inflation embedded in concern's conditions.
Contract for building four F126 frigates (with option for two more ships) was concluded in 2020 for €5.48 billion (excluding weapons), and in 2024 two more frigates were additionally ordered for €2.8 billion and another €300 million for related services and equipment. In other words, overall F126 super-frigates' initial cost was €8.58 billion, and if Rheinmetall's proposal is agreed, this involves project final cost growth by over 63%.
Recall initially agreement for building these frigates was concluded with Dutch Damen Schelde Naval Shipbuilding, with plan to commission first F126 already in 2027 however, all possible timelines failed, among everything due to software problems.
In any case whether Germany continues building F126 frigates or not, it is implementing urgent backup plan and already announced purchasing simpler alternative eight MEKO A-200 frigates, first of which should be delivered by December 2029.
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