Thyssenkrupp Gets Nod For Naval Spinoff To Tap Defense Boom
By William Wilkes (Bloomberg) –Thyssenkrupp AG is moving to cut loose its warship unit, hoping to ride a surge in European defense spending while stepping back from a business that has...
An illustration of the the Blohm+Voss Class 125 frigate.
BERLIN, Dec 2 (Reuters) – The German Navy will receive the first of four new ships ordered from ThyssenKrupp later than expected, the defence ministry and the company said on Monday, confirming a newspaper report.
Daily newspaper Kieler Nachrichten had reported that the first of the Class 125 frigates costing 650 million euros ($885 million) each would be delivered in 2017 rather than in 2016 as previously planned.
It cited unspecified sources as saying a flame-retardant coating had peeled off the ship’s hull, requiring some segments that had already been welded to be re-opened and causing additional costs of up to 100 million euros.
The paper said the German military wanted the shipyards – ThyssenKrupp’s Blohm + Voss and its partner Luerssen Werft – to shoulder the additional costs.
A defence ministry spokesman confirmed there had been a delay, but did not provide further details.
ThyssenKrupp said a new schedule for delivery had been agreed with the navy, but also did not provide details. “The problems that occurred in the application of parts of the internal coating have largely been resolved,” it said in a statement.
The 150-meter Class 125 frigate is designed to be able to remain in a crisis region for up to two years without base or dockyard maintenance, compared with nine months for previous models. It also requires a smaller crew.
($1 = 0.7345 euros) (Reporting by Sabine Siebold; Additional reporting by Maria Sheahan; Editing by Pravin Char)
© 2013 Thomson Reuters. All rights reserved.
This article contains reporting from Reuters, published under license.
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