Germany Cancels Submarine Contract with Greece
The German shipyard Howaldtswerke-Deutsche Werft GmbH (HDW), from Kiel, Germany, and its Greek subsidiary Hellenic Shipyards S.A. (HSY), of Skaramangas, Athens, announced the cancellation of the two submarine programs signed with the Greek defense ministry in 2000 and 2002. The companies claim the outstanding debtby the Hellenic government has accumulated beyond half billion euros. However, since the construction of the four submarines has been completed, and the client is over half a billion Euros in debt, HDW will gain little from the cancellation. However, a forthcoming arbitration, especially with post-election government due in a few months could resolve the crisis.
The "Archimedes" program involved the delivery of four Class U214 submarines, equipped with air-independent fuel cell propulsion. The construction of all four submarines is now completed. The air-independent fuel-cell technology was selected for the modernization of three Hellenic Navy Class 209 submarines, under Neptun II submarine modernization program. The lead submarine of the Type 214 Papanikolis-class was completed in 2006 but was never accepted by the Hellenic Navy. Two years later it was certified as seaworthy by the German MoD. The other three vessels, Pipinos, Matrozos and Katsonis have all been launched at HSY in Greece.
While the manufacturers agree that the client refused to accept the first vessel, they claim the Greek defense ministry has failed to pay Eur. 524 million over the last two years. "With this cancellation HSY has lost the main technology supplier essential for fulfilling the construction programs." Warns HDW, asserting Greece risks grounding its modern submarine force by not complying with the terms of the contract. (In addition to the three Poseidon subs, Greece has four Glavkos Type 209 vessels also built by the German shipyard.) In 2005 ThyssenKrupp Marine Systems acquired HSY, modernized and expanded it to become the largest shipyards in the Eastern Mediterranean. However, like many other shipyards, they currently suffer from the economical crisis, particularly the collapse of demand for yachts and merchant ships.
Germany Cancels Submarine Contract with Greece
TKMS has been involved in two contracts with the Greek state. The first of the contracts, dubbed Archimedes Project, was for the procurement of four 214-class boats, which are also successfully operated by the German Navy. Those boats are fitted with a state-of-the-art fuel-cell technology, allowing it to operate submerged for a very long time. According to TKMS, all four were ready for delivery. The second contract has been concluded to retrofit three 209-class submarines with fuel-cell propulsion technology.
The first 214-class submarine, christened Papanikolis, was laid down in Kiel as far back as February 2001 and launched in April 2004. The contract planned for the manufacturing of the remaining three boats at the Hellenic Shipyards, near Athens, which just as HDW is now part of the German ThyssenKrupp Marine Systems (TKMS) group. As soon as the Papanikolis started her sea trials, however, the Hellenic Navy found a veritable host of major and minor problems with the vessel, which until today has resulted in the refusal to accept her.
The Hellenic Navy declared that the submarine suffered from insufficient stability while sailing in rough sea conditions, heeling by as much as 35-58°. Beyond that they found that the AIP system became inoperable after a few hours and noted problems with the ISUS battle system. The official report of the Navy also said that sea water was leaking into the hydraulic systems and that the submarine was not quite as expected. Therefore, Papanikolis has been docked in Kiel since 2006.
German industry accepted some of the shortcomings liabilities and maintains to have finally fixed the problems, however, payment has still not been made. Some expert suggested that Greece has been intentionally protracting the problem in order to delay payments and renegotiate the price. In fact, Greek Defence Minister Evangelos Meimarakis said in January he would try to renegotiate the contract.
Since the delivery of the Papanikolis, TKMS insisted that the submarine met all standards and, subsequently, engaged into long and fruitless talks with the Greek government on the issue. In addition to the production of the submarines, TKMS has largely invested in modernising and expanding Hellenic Shipyards site, buying it in January 2005. According to TKMS is has provided Greece with the most modern yard to build non-nuclear submarines on the entire Mediterranean.
Back in May, a ray of hope had appeared, when the Chief of the Hellenic Navy General Staff, Vice Admiral Giorgos Karamalikis, was quoted as saying that the technical problems with the Type 214 submarine were being solved and that Greece could soon be in a position to accept the three follow-on vessels. According to the quote, HDW had been willing to keep the Papanikolis and try to sell it to another interested buyer, which may have been Poland.
Although recent reports do not refer to this earlier development, it seems that this alternative has not been successful, as TKMS has now clearly decided to terminate the contracts and to see that payment will finally be made by the Greek government.
Germanys ThyssenKrupp Terminates Greek Submarine Contracts - Military Photos
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