Dutch shipbuilder Damen at risk of also losing Belgian frigate order

Belgium is considering withdrawing an order for two warships from the Dutch shipbuilder Damen, NOS reports. This would be another major setback for the company, which recently also lost an order for six frigates from Germany.

Belgium has ordered two frigates and six minehunters from Damen. But according to Belgian Defense Minister Theo Francken, the delivery of the frigates is taking too long, and the ships are becoming too expensive. It concerns Anti-Submarine Warfare Frigates (ASWF), which are intended to replace the current multipurpose M-frigates.

The first frigate will be delivered in 2033 at the earliest. And the price has risen from €600 million to €1.3 billion, Franken told the Flemish broadcaster VTM. He said that Belgium’s existing Frigates are approaching the end of their lifespan and the country might not be able to wait another ten years. “We really urgently need new ones.”

The Belgian Minister will therefore approach other countries that build naval vessels to see if they can deliver faster than Damen. In Europe, these are France, Germany, Spain, Italy, and Turkey. Franken will decide in October.

The Minister said he would prefer to continue with Damen, but the price and delivery times are a major issue.

This would be another setback for one of the Netherlands’ main Defense industry companies. Germany recently withdrew a €18 billion order for six frigates from Damen, also due to delivery delays and rising costs.

According to NOS, the delays and extra costs are due to the rapid development of new weapons systems, which require the ships’ design to be modified. Damen recently said it would claim damages from Germany for the canceled order.

It is not clear what the consequences will be if Belgium also pulls out.

Damen is also facing some legal problems. The company is accused of bribing officials abroad to win more shipbuilding contracts. A corruption conviction could have massive consequences - it could bar Damen from executing Dutch government orders for years. In another case, the shipbuilder is suspected of evading the sanctions against Russia.