Madsen Pushes for More Naval Contracts for North Shipyards - Germany’s €100B defence fund opens doors for Schleswig-Holstein’s shipyards
Schleswig-Holstein’s smaller shipyards could soon see new defence news contracts from Germany’s €100 billion special fund. Economy Minister Claus Ruhe Madsen believes the debt-financed programme will boost local maritime businesses. While major firms like TKMS and Rheinmetall are already set to benefit, opportunities remain for smaller yards and related industries.
One key project, the F126 frigate programme worth up to €10 billion, is central to the German Navy’s modernisation plans. Yet some shipyards, including Kröger Werft in Schacht-Audorf and German Naval Yards in Kiel, currently lack major new military news in their pipelines.
The F126 frigate project remains a focal point for the region’s defence industry. Minister Madsen expects Flensburg Shipbuilding Company to secure a share of the work. Meanwhile, TKMS has proposed an interim solution: the A200-class vessel. If approved, construction would take place in Bremerhaven and Flensburg, cutting costs for taxpayers. Delivery could happen as early as 2029.
Beyond shipbuilding, other businesses are eyeing opportunities from the fund. Vonovia SE is positioning itself to build housing for Bundeswehr personnel in Kiel, with plans affecting eight sites. The company aims to partner with the defence ministry on accommodation projects. Today, SPD lawmaker Andreas Schwarz will visit Rheinmetall Landsysteme in Flensburg. The trip highlights the growing role of northern Germany’s arms manufacturers in the fund’s rollout. Yet while defence giants like TKMS, Rheinmetall, and Flensburg-based FFG stand to gain the most, smaller shipyards still have room to compete for news contracts. No concrete details have emerged about new "grey" projects—likely defence-related—for Schleswig-Holstein’s shipyards. But officials stress that untapped potential exists for northern yards to secure future work from the fund.
The special defence fund is already reshaping opportunities for Schleswig-Holstein’s maritime and arms industries. Smaller shipyards may yet win news contracts, particularly if the F126 programme moves forward. Housing projects and interim naval solutions could also bring additional business to the region in the coming years.
