One more step for ThyssenKrupp Marine Systems (TKMS) to the signing of a major contract. Norway will place an order for the acquisition of four submarines U-212 NG (Next Generation) to TKMS in 2019, announced on Tuesday that the Defence minister Marie Eriksen Soreide during a visit with his German counterpart, a naval base, and German. According to the German press, the price of the four submarines amounted to 4.3 billion euros in total.
This contract falls within the framework of a cooperation agreement between the two countries, which also provides that the German army is acquiring two submarines identical to ThyssenKrupp and missiles at the Norwegian Kongsberg.
A tender biased
To counter the offer of a Naval Group (ex-DCN), which was extremely attractive, the German group, with the help of German chancellor Angela Merkel, has been forced to go beyond what is allowed for competitive dialogue Norwegian. That is to say, very clearly not to comply with it by offering in Oslo a group buy with the purchase of two submarines, additional to the German navy. Good pick for the Germans, who won the Norwegian market. “This offer was unbeatable,” provided one last February in France, which has nuclear submarines in its fleet. Naval Group could not, therefore, propose a similar offer to TKMS.
This is also what was suggested in February, Naval Group in its press release without the say very clearly : Norway has interrupted “the competitive process before its conclusion to select an alternative solution in the form of a group buy igc with another european country (Germany, editor’s note)” . As what the premium was given to those who did not comply with the tender. It will be necessary to remember that in Norway yet considered as a reliable partner and serious in the process of tendering.
Economies of scale for Norway
In the 80s, the Germans had proposed this same type of deal to the Norwegians. Oslo had bought six submarines Ula (type 210 German), but Berlin had not confirmed her purchase. In any case, the German offer is today still unbeatable on paper. Berlin offers neither more nor less to share between two country, the cost of acquisition, the development of a new submarine from the U212, procurement, logistics, and operations to the Norwegians. That is to say, cost savings and synergies unhoped for Norway. He had to be crazy to refuse such an offer, but the history may stutter from time to time…
Close to the Norwegian navy and the German
In this competition, Naval Group has long been an outsider in the face of TKMS before his bid is not worried about the Germans, who understood that the group habs deceived really Oslo. Because up to now TKMS Berlin and saw Norway as a preserve, the Norwegian navy is culturally closer to Germany. Especially the site German manufactured and then looked after the six submarines Ula Norwegian (type 210 German) put into service between 1989 and 1992, and who should be taken out of service around 2025. Where a certain closeness with the staff of the Norwegian navy. “Norway and Germany maintain successful cooperation”, explained the ministry of Defence of norway.
And yet, there was much fault in this cooperation. Should we simply recall that the French navy uses 240 days per year, its sub-marine while Norway may not use these buildings of German manufacturing that 100 days per year. Finally, Norway can rely on the national navy, a blue water navy of the first rank, which also has missions in the arctic circle.