Germany's Hensoldt assesses fallout from terminated frigate programme (updated)

Hensoldt AG

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    BERLIN, June 30 (Reuters) - German defence company Hensoldt HAGG.DE said on Tuesday that it does not expect the termination of the F126 frigate programme to affect its short or medium-term forecast but was currently assessing the specific implications. 
Shares in Hensoldt were down 1.3% at 0746 GMT. 
The total contract value for Hensoldt, which was to supply a maritime defence radar system, was just over 200 million euros, more than a third of which had already been recognised as revenue, it said. 

    How the remaining order book will be handled depends on the specific contractual arrangement and further consultation with the partners involved, it added.
  

    "Hensoldt is coordinating the way forward closely with its contractual partner, Thales Netherlands," it said.
  
Germany scrapped the landmark frigate programme this month following delays and expected cost overruns. Since the F126 order was placed in 2020, Germany has spent around €2.3 billion on the project, according to Defence Minister Boris Pistorius.

         Berlin will instead switch to smaller Meko A-200 frigates.
  

    Hensoldt added that the radar system was a standalone product that has been commissioned for projects such as Brazil's Tamandare frigates, which are based on the Meko concept. 
  

   
 

 (Reporting by Miranda Murray, editing by Linda Pasquini)
 ((Miranda.Murray@thomsonreuters.com;))