MPs approve €270 million government support for Damen Shipyards

The Dutch government has approved 270 million euros in state support to prevent shipbuilder Damen Naval from sinking deeper into acute financial troubles, NOS reports.

Production setbacks have reportedly struck Damen’s major order for six German frigates worth about 7 billion euros. The project has been delayed partly due to software problems, triggering missed interim deadlines set by the German navy. As a result, no payments are being released for now, creating immediate financial strain on the company.

The government has a direct stake in stabilizing Damen Naval. The Ministry of Defense has its own shipbuilding orders underway with the yard, and the defense industry is currently viewed as a strategically vital sector.

The Tweede Kamer, which began its summer recess last week, returned to debate the measure. Under parliamentary rules, at least 76 members must be present to conduct business.

The Public Prosecution Service (OM) recently announced it will prosecute Damen on suspicion of criminal offenses. Prosecutors allege the company engaged in bribery, forgery, and money laundering. Damen is also accused of violating sanctions against Russia.