{"text":[[{"start":8.8,"text":"Defence giant Rheinmetall is seeking about €12bn in return for taking over a delayed warship project that has become one of Germany’s most high-profile procurement debacles."}],[{"start":20.05,"text":"After six months of talks and due diligence, Rheinmetall’s new naval division has laid out its terms for taking over responsibility for building six F126 frigates for the country’s navy, according to two people familiar with the discussions. "}],[{"start":35.8,"text":"The project was previously led by the Dutch shipyard Damen. But software problems and friction with German procurement officials prompted Berlin to withhold payments, forcing Damen to reconsider its role six years after winning the contract."}],[{"start":50.349999999999994,"text":"If German officials approve the Rheinmetall offer, it would bring the total cost of the six warships for the German taxpayer to €14bn, once €2bn already paid to Damen and its subcontractors is included. "}],[{"start":63.949999999999996,"text":"Rheinmetall Naval Systems’ proposed €12bn price tag includes an inflation clause that would link the price to delivery times, according to one of the people. "}],[{"start":73.94999999999999,"text":"The delivery date for the first ship, originally planned for 2028, is already four years late."}],[{"start":79.94999999999999,"text":"Rheinmetall Naval Systems has told officials it can deliver the first ship by 2032 — or even by the second half of 2031, if Germany’s procurement agency makes some concessions on its rigorous process of certification and approval. "}],[{"start":95.94999999999999,"text":"The programme to build six of the multirole warships, seen as vital to European deterrence against Russia in the Baltic and north Atlantic, has become one of Germany’s biggest defence procurement headaches at a time when Berlin is investing hundreds of billions in rearmament."}],[{"start":110.49999999999999,"text":"If accepted, Rheinmetall’s contract would be the biggest ever single deal for the Düsseldorf-based company, which in March completed its acquisition of the Bremen-based shipbuilder Naval Vessels Lürssen (NVL). "}],[{"start":123.34999999999998,"text":"NVL had previously been a subcontractor on the project. The acquisition of the shipyard is part of an ongoing expansion led by Rheinmetall chief executive Armin Papperger to take the company beyond its traditional domain of tanks, artillery and ammunition into naval, drones and even space."}],[{"start":141.45,"text":"German lawmakers — who have the power to veto all major arms projects — will probably raise questions about the timeline and the company’s request to water down some of the onerous certification processes."}],[{"start":154.1,"text":"Rheinmetall Naval Systems declined to comment. The division chief executive, Tim Wagner, told the German newspaper Welt am Sonntag in March that he expected to be approved as the prime contractor this summer. "}],[{"start":166.9,"text":"Chancellor Friedrich Merz said last week he hoped Berlin could “successfully complete the F126 frigate project under German leadership”."}],[{"start":176.4,"text":"The delays to the F126 programme prompted German officials this year to start planning the purchase of a series of smaller “off-the-shelf” MEKO A-200 frigates from the Kiel-based TKMS, a subsidiary of the industrial giant Thyssenkrupp, at a cost of €1bn each. The move is part of what officials have called a “two-pronged approach” to help fill the military’s capability gaps as quickly as possible."}],[{"start":203.05,"text":"The German defence ministry has signed a preliminary agreement to buy four MEKO A-200 warships. But three people familiar with the plan told the FT that officials had asked TKMS to draw up an option to extend the order to eight — a move that one of the people said was an attempt to gain leverage over Rheinmetall in the contract negotiations. TKMS declined to comment."}],[{"start":226.65,"text":"The German defence ministry and procurement agency declined to comment. One person familiar with the process stressed that negotiations between the parties over the F126 were ongoing."}],[{"start":245.9,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1778069017_2879.mp3"}