{"id":62782,"date":"2020-04-16T20:02:07","date_gmt":"2020-04-16T20:02:07","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2020\/04\/16\/berlin-is-reportedly-brokering-a-deal-to-consolidate-german-naval-shipbuilders\/"},"modified":"2026-08-08T00:29:51","modified_gmt":"2026-08-08T00:29:51","slug":"berlin-is-reportedly-brokering-a-deal-to-consolidate-german-naval-shipbuilders","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/global\/europe\/2020\/04\/16\/berlin-is-reportedly-brokering-a-deal-to-consolidate-german-naval-shipbuilders\/","title":{"rendered":"Berlin is reportedly brokering a deal to consolidate German naval shipbuilders"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">COLOGNE, Germany \u2014 The German government is facilitating talks between major naval shipbuilders in an effort to set up a <a href=\"https:\/\/www.defensenews.com\/global\/europe\/2020\/02\/24\/commentary-towards-a-naval-airbus-not-so-fast\/\" target=_blank>national conglomerate<\/a> rivaling industry champions like Naval Group in France and Fincantieri in Italy, according to a local media report.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Negotiations to that effect have been ongoing behind closed doors since the beginning of 2020 between ThyssenKrupp Marine Systems, German Naval Yards Kiel, and L\u00fcrssen, broadcaster NDR reported Thursday.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Top executives from the companies confirmed the developments on Twitter, though without elaborating on the status of the negotiations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">News of the consolidation plan comes in the wake of German Naval Yards Kiel and TKMS losing a multibillion-dollar contract for new Germany Navy frigate-type ship, dubbed MKS 180. Dutch bidder Damen <a href=\"https:\/\/www.defensenews.com\/global\/europe\/2020\/01\/16\/germanys-67-billion-frigate-deal-with-dutch-shipbuilder-damen-may-be-the-last-of-its-kind\/\" target=_blank>won the competition<\/a> in January. The Dutch company has teamed with L\u00fcrssen for the program, vowing to do most of the construction work in Germany.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Still, the MKS 180 award angered industry lobbying groups in Germany, who argue that the country\u2019s good-faith effort to carry out a European Union mandate for bloc-wide competition in major public programs backfired. Other European countries tend to keep such defense-related work within their own industrial ecosystems, the argument goes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe need for a German consolidation in naval shipbuilding has been repeatedly emphasized by us and our owner, Privinvest, during the past few years,\u201d German Naval Yards Kiel CEO J\u00f6rg Herwig was quoted as saying in a statement. \u201cOnly a strong German player will be able to remain globally competitive and strengthen the German technology sector.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Privinvest is owned by French-Lebanese businessman Iskandar Safa.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A request for a statement from the German Ministry for Economic Affairs and Energy was not immediately returned on Thursday.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/defensenews\/global\/europe\/2020\/01\/21\/industry-protest-ensnares-germanys-multibillion-dollar-combat-ship\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"217\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/2018_09_04_German_Naval_Yards_IMG_9266.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Industry protest ensnares Germany\u2019s multibillion-dollar combat ship<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">The dispute comes at a time when the German government is adopting a new policy that grants an exception to the EU competition mandate for surface combatants.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">The idea of a unified German naval industry cluster runs counter to the narrative that the European defense market should focus less on national retrenchment and instead bank more on efficiencies through cross-continental mergers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cI think we have to be honest with ourselves and admit that European defense acquisition will be mostly national, and maybe binational or trinational,\u201d said Sebastian Bruns, a naval analyst with the University of Kiel in northern Germany.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Bruns said L\u00fcrssen\u2019s role in the consolidation talks will be interesting to watch because the company has its foot in the door of the MKS 180 program \u2014 through Damen \u2014 and at the same time would benefit from a German industry conglomerate with the Navy as a guaranteed customer.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">All the while, German Naval Yards Kiel has begun the legal process of challenging the Defence Ministry\u2019s pick of Damen for the business. Letting the litigation play out in the courts is all but certain to cause a delay in the eventual delivery of the vessels to the sea service.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But in the course of future consolidation talks, the government could use its leverage as the broker \u2014 and ultimate approval authority \u2014 to put the protest by German Naval Yards Kiel to rest and let the MKS 180 program proceed swiftly, Bruns said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIn the end, the most important question is what actual results will come out of this,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>ThyssenKrupp Marine Systems, German Naval Yards Kiel, and L\u00fcrssen Defence could form a national industry champion akin to those in France and Italy.<\/p>\n","protected":false},"author":7,"featured_media":116956,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":46,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[160,46,11,12,16,36],"tags":[],"coauthors":[3425],"class_list":["post-62782","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news-roundup","category-europe","category-global","category-industry","category-naval","category-newsletters"],"acf":{"subheadline":"","legacy_arc_id":"UDHEW3MGG5HGRA4FLKN3QQOEPY","arc_canonical_url":"\/global\/europe\/2020\/04\/16\/berlin-is-reportedly-brokering-a-deal-to-consolidate-german-naval-shipbuilders\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented 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