GNYK to take legal action over MKS 180 procurement decision

21 January 2020 (Last Updated January 21st, 2020 15:22)

Kiel-based shipyard German Naval Yards (GNYK) is set to take legal action against the decision to procure Multi-Purpose Combat Ship MKS 180 frigates from a Dutch-led consortium.

Kiel-based shipyard German Naval Yards (GNYK) is set to take legal action against the decision to procure Multi-Purpose Combat Ship MKS 180 frigates from a Dutch-led consortium.

The procurement decision was given by the Federal Ministry of Defence (MoD) to Dutch shipbuilder Damen along with Hamburg-based Blohm + Voss and Thales.

The legal challenge is GNYK’s right used under the public procurement law to sue the decision.

The four-hull contract is valued at $6.7bn and includes options for two additional hulls and the possibility of future sales. The first ship is expected to be delivered by 2027.

With Damen as the prime contractor, construction of the ships will be carried out at the Blohm + Voss shipyard in Hamburg and other North German Lürssen Group shipyard locations.

This approach will see 80% of the investment spent in Germany. Additionally, 70% of electronic application services will be provided by Thales German subsidiary and other subcontractors in the country.

German shipbuilder ThyssenKrupp Marine Systems had fallen out of the race early in the bidding process.

ThyssenKrupp Marine Systems, along with GNYK and American defence contractor Alion, partnered to participate in the process, which was also rejected.

A GYNK spokesman said: “After a thorough examination, we have decided to file a complaint against the award decision.

“We have serious doubts about the legality of the decision and will, therefore, exhaust all legal possibilities at our disposal.”

Meanwhile, the selection of Damen and Blohm + Voss for the construction of MKS180 frigates still awaits parliamentary approval in Germany.

In the past, GYNK has successfully delivered orders of two modern Meko A-200 frigates for the Algerian Navy and four corvettes for the Israeli Navy.