The Dutch House of Representatives will return from summer recess on Thursday 10 July to vote on financial support for the Dutch shipbuilder Damen Naval. The amount in question is said to be EUR 270 million.
This has been reported by Dutch public broadcaster NOS, who is citing various sources. According to the NOS, it is not known whether the support involves a loan or a guarantee to Damen.
Also read: Shipyards have plenty of work, but financial risks remain high
Finanical troubles with German frigates
On Wednesday 4 June, Dutch newspaper NRC reported that Damen had run into acute financial problems because the Germans refuse to pay the instalments for the six frigates Damen is building for the German Navy. Damen Naval secured the prestigious EUR 5.5 billion order for four F126 frigates in 2020. Two more sister ships were added in 2022 for EUR 3.1 billion.
The reason is said to be that Damen is failing to meet crucial deadlines caused by difficulties with the software platform (3DExperience) introduced in 2020 by France’s Dassault Systèmes for digitally capturing construction drawings for the frigates.
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Vote
The vote has been announced on the website of the Dutch government, although it has not yet been officially revealed which company or which amounts are involved. It concerns adjustments to the budgets of the Ministries of Economic Affairs and Defence.
Damen Naval is very important for the Dutch government, as the shipyard is also building ships for the Royal Netherlands Navy, including new Anti-Submarine Warfare Frigates.
UPDATE 2.30 PM: The House of Representatives has voted in favour of providing the financial support, although still no details were revealed about the amount or the beneficiary.
Difficult time for Damen
Damen is not just facing financial difficulties. In May, the Dutch Public Prosecution Office announced it was prosecuting the shipbuilder for bribery, forgery, money laundering and violations of sanctions imposed on Russia. The trial will presumably be able to start with a pre-trial hearing in the second half of this year.
Picture: Damen Shipyards Gorinchem (© S.J. de Waard / CC-BY-SA-4.0 via Wikimedia Commons).
Also read: Damen Shipyards prosecuted for bribery and sanction violations
