France’s Naval Group wins $6 billion contract to build 4 submarines for the Netherlands
Europe, News March 18, 2024 No Comments on France’s Naval Group wins $6 billion contract to build 4 submarines for the NetherlandsThe Netherlands has selected France’s Naval Group to construct four attack submarines in a project valued at approximately $6.17 billion. Under the contract, the Naval Group will provide four conventionally powered Barracuda submarines to the Netherlands.
The Dutch navy has been seeking a replacement for its aging Walrus-class attack submarines. The initial vessel of this series was decommissioned by the Navy in October 2023 while the rest of the submarines are also reaching their retirement age.
The Naval Group was competing against Germany’s ThyssenKrupp Marine Systems and Sweden’s Saab Kockums. Naval Group would collaborate with the Netherlands’ Damen Shipyard Group on the project.
The French shipbuilder has been tasked to deliver the first two vessels within a timeframe of 10 years following the signing of the contract.
“The vessels offer increased strike power and enhanced operational capabilities, and will therefore be deployable worldwide for various types of missions,” Chief of Defense of the Netherlands General Onno Eichelsheim said in a Tweet following the announcement of the contract.
The French government stated that selecting the Naval Group would provide the Netherlands with the submarines “of the highest global standards.” The statement further highlighted that the program would also support a long-term French-Dutch partnership and bolster bilateral defense cooperation between the two nations.
A factsheet released by the Dutch Ministry of Defense highlights that the new submarines will have a “large capacity thanks to modern battery technology”. The new submarines would feature torpedoes and cruise missiles that have a longer range than those of the older ships, and conditions for special forces operations would significantly improve while there would be a “reduced chance at detection” of the ship.
Dutch naval spending
The Dutch government has started a significant investment initiative to replace its primary naval vessels and submarines amid the rising security threats in Europe.
In addition to the submarines, the country intends to commence the construction of over 20 surface vessels within the next decade, with an investment exceeding $11 billion. Regarding the submarine procurement, the Dutch were specifically seeking an expeditionary vessel capable of operating in the nation’s overseas territories.
The Netherlands started the procurement process for four long-range, conventionally powered submarines by requesting proposals from the three candidates in November 2022.
Political backlash
As the Dutch government was preparing to finalize the contract with the French defense manufacturer, a debate took place in the Dutch parliament. This debate was prompted by media leaks that revealed that the order was slated to be awarded to a French company, sparking outrage over the decision not favoring Dutch companies.
Politicians from the Dutch opposition, particularly representatives from the Zeeland province where Naval Group’s competitor Damen is based, called the debate. Dutch parliament said that the French company has an unfair advantage over Dutch rivals, as “the Naval Group shipyard, owned by the [French] state, can take larger risks and deliver for prices a commercial wharf can barely compete with.”
Eventually, it was settled by the government that the Dutch company, Damen, would work in collaboration with the French Naval Group. Although it has been finalized that the Naval Group would be awarded the contract, the political backlash against the deal continues.
In 2021, Naval Group believed it had secured a significant $32 billion agreement with Australia for the production and sale of twelve conventional submarines. However, at the eleventh hour, Australia aligned itself with the United States and the United Kingdom in the AUKUS pact, which involved the provision of nuclear-powered vessels to Canberra, manufactured by the U.S. and the UK.
The AUKUS agreement resulted in a major blow to French-Australian relations as French President Emmanuel Macron termed the deal as a “stab in the back” for France.
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