New work as German yard changes hands

German media reports quoted new owner Friedrich Luerssen saying Peene-Werft will be used for naval and merchant repair and to support yacht newbuilding.

That news was not unexpected, but it is the first comment reported from Luerssen on its plans for Peene-Werft since it bought the yard for €17 million last December in the wake of P&S bankruptcy. A buyer is still being sought for sister yard Volkswerft in Stralsund.

The German media reports said Mr. Luerssen also revealed that a naval newbuilding contract for two 70m bows for Type F125 frigates would be transferred to Peene as soon as possible. Work was starting in June. Peene has just completed its last newbuilding, a fourth 52m patrol boat for Sweden.

The two yards have co-operated before in naval newbuilding and Mr. Luerssen was quoted as saying Wolgast had always been “a reliable partner”.

He was also reported to have confirmed that the Luerssen Group is negotiating a big contract with Saudi Arabia for patrol boats and to have said that if the deal comes off, it is possible some of that work could go to Peene-Werft.

Reports on the deal, said to be worth about €1.5 billion and to cover 10-12 corvettes, have circulated for some time. But the issue remains politically controversial and Berlin Government approval for foreign arms exports is required.