Tag: K130

Germany awards €2.4bln contract for five new K130 corvettes

German Navy F 260 Braunschweig

The German defense procurement agency BAAINBw has authorized a €2.4 billion contract for the construction of five new Braunschweig-class (K130) corvettes.

The ARGE K130 consortium, composed of Lürssen Werft, ThyssenKrupp Marine Systems and the recently incorporated German Naval Yards Kiel, will be delivering the ships.

Led by Lürssen Werft as prime contractor, the shipbuilding team is to deliver the ships by 2025.

The German Navy already operates five K130 ships which means the corvettes will be based on an existing design incorporating updated technologies.

Initial announcements made by the German defense ministry indicated the ships could be acquired at a price of €1.5 billion but reports emerged that the shipbuilders were asking €2.9 billion for five corvettes and two training facilities for corvette-operation.

The value of the contract, announced by BAAINBw on September 12, is €900 million more than what the ministry initially expected to pay.

In addition to price issues, K130 corvette construction was stalled by shipbuilder German Naval Yards who protested the defense ministry’s decision to award the construction contract without a public tender in order to speed up the whole process.

The German cartel office, in a ruling announced on May 18, upheld the complaint arguing that an open tender had precedence over a quick procurement.

In response to the ruling, Lürssen and TKMS offered German Naval Yard to join the consortium with a 15 percent stake in the construction. The newly-formed consortium was approved by the cartel office.

Braunschweig-class corvettes were ordered because of the navy’s increased scope and tempo of operations. Another reason is the fact that the MKS180 Multi-role Combat Ship order was delayed and the corvette announcement was interpreted as an offset to the delays.

The 90-meter ships are designed for operation in coastal waters, augmenting the capabilities of fast attack boats and frigates. They are equipped with two 27 mm Mauser MLG27 remote-controlled, fully-automatic cannons, and one OTO Melara 76 mm gun.

The corvettes are also feature a helicopter landing deck and use the Rolling Airframe Missile (RAM) – guided naval missile for close-in defense against anti-ship missiles, aircraft, helicopters and surface threats.

 

German cartel office OKs newly-formed K 130 corvette construction consortium

K130 (also known as Braunschweig-class) corvette FGS Magdeburg, Photo: PIZ Marine.

Construction of additional five corvettes for the German Navy has been cleared for take-off by the German cartel office which ruled that the newly-formed shipbuilding consortium broke no cartel laws.

This means that German Naval Yards Kiel GmbH will be able to join the ARGE K130 consortium – made up of Lürssen and Thyssen Krupp Marine Systems – which built the first five ships.

To remind, Germany’s defense ministry wanted to speed up the corvette acquisition by avoiding an open procedure, buying the five corvettes directly from the ARGE K130 consortium.

However, the cartel office upheld a complaint made by shipbuilding competitor German Naval Yards, arguing that an open tender had precedence over a quick procurement.

In response to the ruling, Lürssen and TKMS offered German Naval Yard to join the consortium with a 15 percent stake in the construction. This solution has now received a green light from the cartel office.

“This is really good news,” Inspector of the German Navy, Vice Admiral Andreas Krause, commented. “This goes to show that we can implement armament projects quickly if we act in concert and engage in open discussion.”

Price issue

The new K130 corvettes still have one issue to clear as the actual contract to build the ships is yet to be signed. The price could prove to be a stumbling block according to German media reports which say the shipbuilders are asking €2.9 billion for the five corvettes and two training facilities for corvette-operation.

The almost €3 billion price tag is in stark contrast to the €1.5 billion the ministry of defense expected to spend on the corvettes when the acquisition was announced in October 2016 by defense minister Ursula von der Leyen.

The ministry reasoned that the corvettes could be cheaper because they are an existing design and wouldn’t have to be designed from scratch.

Whether the contract is signed by August, before the German federal elections, remains to be seen.

Should everything go according to the defense ministry’s plans, the German Navy could receive the first of five corvettes by 2019 with remaining ships joining by 2023.

The ships are set to be stationed at the German naval station Warnemünde, Kiel, bringing around 1,000 more personnel to the base.

Source: NAVALTODAY.

 

 

German parliament green-lights construction of five corvettes

German Navy photo of K130 corvette Ludwigshafen am Rhein at sea.

NAVALTODAY, 23 June 2017

The German parliament on Wednesday decided to approve 11 billion euros for arms procurement which will include the construction of additional five K130 corvettes.

The German Navy is expected to receive the five ships by 2023.

Prior to this decision, German defense minister Ursula von der Leyen’s aim to procure the additional K130 corvettes was faced with hold ups by the parliament’s budget committee over the price of the ships and by the German cartel office regarding the selection of shipbuilders.

Vice Admiral Andreas Krause, Inspector of the Navy, said he was pleased with the decision adding that it would now allow the navy to build the much-needed ships as fast as possible.

The K130 corvettes, also referred to as Braunschweig-class, are being ordered because of the navy’s increased scope and tempo of operations. They will be built by the Lürssen – TKMS shipbuilding duo joined by German Naval Yards.

German shipbuilders resolve corvette construction dispute

Illustration: German Navy photo of K130 corvette FGS Magdeburg

NAVALTODAY.COM, 10 June 2017

German shipbuilders have reportedly resolved an issue that blocked German defense minister Ursula von der Leyen’s plans for a quick and simple acquisition of additional five K130 corvettes for the navy.
The defense ministry had planned to award a construction contract to Thyssen Krupp Marine Systems (TKMS) and Lürssen, the corvette’s original builders, without a public tender.

This was disputed by German Naval Yards who argued that the move was illegal. The German cartel office, in a ruling announced on May 18, upheld the complaint arguing that an open tender had precedence over a quick procurement.

In response to the ruling, Lürssen and TKMS offered German Naval Yard to join the consortium with a 15 percent stake in the construction, according to German media reports.

If confirmed, the agreement could allow the defense ministry to order the corvettes before the German federal elections in fall this year.

The deal between German Naval Yards and the Lürssen-TKMS duo is yet to be officially confirmed and could possibly still be subject to an approval by the cartel office.

Braunschweig-class corvettes, as the vessels are also referred to, are being ordered because of the German Navy’s increased scope and tempo of operations.

Another reason is the fact that the MKS180 Multi-role Combat Ship order was delayed and the corvette announcement was interpreted as an offset to the delays.

Germany hopes to have the first two corvettes join the fleet by 2019 with the remaining ships joining by 2023.