$4.3B of Guarantees for German Shipbuilder to Secure Sub Deal
Germany's budget committee is expected to approve state guarantees worth up to $4.27 billion to help Thyssenkrupp Marine Systems (TKMS) win an order from Argentina for three submarines, two sources in the budget committee said on Wednesday.
Several media outlets have reported that a French shipbuilder is also been in the running for the order, worth some 2.2 billion euros, which has not yet been made.
The guarantees would cover the construction and delivery of three Type 209 submarines, made by TKMS, plus replacement parts and training.
The shipyard is in direct talks with the Argentinian defence ministry, according to a budget committee document seen by Reuters. Delivery would be due in 2034 and 2035. A prerequisite for Argentina awarding the contract to the German shipyard is the offer of credit financing on long-term payment terms. The committee is due to approve the guarantees later on Wednesday, according to the sources.
No comment was immediately available from TKMS.
(Reuters)