The German Government plans to purchase four Meko A-200-class frigates from TKMS to bolster its anti-submarine warfare capabilities, the defence ministry said on Wednesday.
The ships are intended to serve as a stopgap solution, as delivery of the F126 frigates originally earmarked has been delayed.
The move is intended to strengthen anti-submarine warfare capabilities and fulfil commitments to NATO, the ministry said.
The Meko frigates are expected to cost around one billion euros ($1.2 billion) apiece, according to industry sources, making them cheaper than the F126s.
According to the ministry, delivery of the Meko frigates is expected from the end of 2029.
With the extension of the preliminary contract now approved, TKMS can continue to reserve production capacity and order materials and equipment.
(Reporting by Markus Wacket; writing by Christoph Steitz; Editing by Kirsten Donovan)