Madsen Pushes for More Naval Contracts for North Shipyards - Germany’s €100B defense fund revives naval shipbuilding with new contracts
Germany’s €100 billion defence fund is set to boost naval shipbuilding across the country. Major firms like Thyssenkrupp Marine Systems (TKMS) and Rheinmetall will secure large contracts, but smaller northern shipyards could also gain new opportunities. Schleswig-Holstein’s economy minister has highlighted the potential for local businesses to benefit from the modernisation push.
The F126 frigate programme, valued at up to €10 billion, remains a key part of the German Navy’s upgrade plans. TKMS, the country’s largest naval shipbuilder, has proposed its A200-class vessel as a cost-effective alternative. If approved, these frigates could be built in Bremerhaven and Flensburg, with deliveries starting by 2029. The company claims one F126 costs as much as two A200s, offering potential savings for taxpayers.
TKMS has already secured an €800 million contract to modernise six Type 212A submarines. With an order backlog of €18 billion, the firm stands to gain further from the defence fund. Meanwhile, Flensburg-based arms manufacturer FFG and Rheinmetall will also receive significant contracts. SPD lawmaker Andreas Schwarz is visiting Rheinmetall’s Flensburg site today to discuss its role in the programme. Smaller shipyards, however, have yet to land major military deals. Neither Kröger Werft in Schacht-Audorf nor German Naval Yards in Kiel currently have new defence projects lined up. Economy Minister Claus Ruhe Madsen remains optimistic, urging northern shipyards to compete for subcontracts. He specifically hopes Flensburg Shipbuilding Company will secure a share of the F126 work.
The defence fund opens doors for both industry leaders and smaller shipyards. While TKMS and Rheinmetall move forward with large-scale projects, regional firms could still tap into subcontracts and modernisation work. The push for naval upgrades may yet bring new contracts to northern Germany’s maritime sector.
