Rheinmetall could sign a contract to take over Germany's delayed F126 frigate programme in the second quarter, CEO Armin Papperger said on Thursday, further highlighting the company's growing focus on the naval sector.
"The biggest contract will be for sure F126, where we expect that in Q2 there could be a signing," Papperger said on a conference call after first-quarter results.
His comments appear to confirm a report in the Financial Times on Wednesday that said Rheinmetall was seeking some €12 billion ($14.13 billion) from Germany to take over the programme. Papperger said that the figure did not seem entirely incorrect.
Rheinmetall has undertaken technical due diligence on the F126 deal that would see it replace Dutch shipbuilder Damen on the delayed project, said Papperger.
The defence ministry has said Damen is behind schedule on the contract and that NVL, or Naval Vessels Luerssen, bought by Rheinmetall in March, could step in as general contractor.
Germany's defence ministry said on Wednesday that discussions on the frigates had not been concluded.
Rheinmetall is seeking to expand its naval activities after its recent acquisition of German warship maker NVL and earlier on Thursday said it had entered the race to buy shipyard German Naval Yards Kiel with a non-binding bid.
(Reporting by Matthias Inverardi, Writing by Madeline Chambers; Editing by Miranda Murray)
