The Düsseldorf-based defense group Rheinmetall is planning to enter the naval shipbuilding sector and is reportedly negotiating the acquisition of Naval Vessels Lürssen (NVL).
According to industry sources, the Lürssen family intends to divest its shipyards in Hamburg, Wilhelmshaven, and Wolgast, which are active in naval shipbuilding, and to concentrate on yacht construction in the future. For Rheinmetall, traditionally specialized in tanks and ammunition, the acquisition would mark a significant portfolio expansion.
Rheinmetall CEO Armin Papperger had already hinted at such a move at an analysts’ conference in July, without giving details. “We are always interested in expanding our product portfolio,” Papperger said on Wednesday in Unterlüß, Lower Saxony, when asked about a possible interest in NVL.
Rheinmetall’s Supervisory Board is reportedly set to discuss the project in the coming weeks. Industry insiders see the move as a potential course-setter for the consolidation of German naval shipbuilding, where NVL, Thyssenkrupp Marine Systems (TKMS), and German Naval Yards have so far competed for orders. In recent weeks, the German government has emphasized the need for stronger cooperation among defense companies.
NVL’s international projects
With an annual turnover of around €1 billion, NVL ranks among the leading producers of naval vessels. The company is currently engaged in several key projects, including the construction of the German Navy’s new F126-class frigates, the 424-class fleet service boats, and the 707-class replenishment vessels. NVL is also active internationally, cooperating in the construction of Australia’s Arafura-class offshore patrol vessels, in a joint venture with the UK’s Kraken Technology Group on unmanned platforms, and in the planned F127 air-defense frigate in collaboration with TKMS.
However, the deal is not yet certain: it would require approval from all Lürssen shareholders, as well as clearance from competition authorities.
The German metalworkers’ union IG Metall has stated that it has not yet been involved. “We are generally open to a consolidation of the naval shipyards, but the German government must play an active role in this. We do not know to what extent this is the case with possible talks at Lürssen,” a spokesperson said.
