In an interview published Saturday, Rheinmetall CEO Armin Baberger condemned the German government's decision to abandon the new warship project, calling it a major setback for the group.
Last month, the German government unexpectedly announced the cancellation of the project, which was expected to cost billions, leading to a decline in shares of Rheinmetall, which had been a candidate to win the contract.
Baberger said the cancellation of the F-126 project came as an unexpected shock. The project was initially awarded to a Dutch company, but after years of delays and problems, it was widely expected that German authorities would award the contract to Rheinmetall, especially since the company is a major supplier to the German military.
Instead of proceeding with the project, the government decided to purchase smaller frigates from the TKMS group. Babberger defended Rheinmetall's investment in the shipbuilding sector through the acquisition of NVL, which was slated to undertake the F-126 project, stating that the company's entry into the naval field was a sound decision due to high demand, and not only from the German military.
Germany, like other European countries, is spending large sums to modernize its military forces, which have long suffered from neglect in light of the change in the American position after Donald Trump's return to the White House.
