Dutch and German shipyards to build new German warship - sources

FILE PHOTO: The Luerssen Peene shipyard is pictured in Wolgast, Germany, October 23, 2018. REUTERS/Hannibal Hanschke

BERLIN (Reuters) - Dutch shipyard Damen made the only feasible offer to build Germany’s new multi-role warship MKS 180 in an alliance with its Bremen-based partner Luerssen, two people familiar with the decision told Reuters on Monday.

The contract to build at least four MKS 180 warships is worth more than 4.5 billion euros (3.9 billion pounds) and roughly 70% of the production will be located at Luerssen’s shipyards in northern Germany, one person familiar with the matter said.

The German government is expected to announce its decision on Tuesday.

The ship tender is one of Germany’s biggest arms projects, along with a contract for the MEADS missile defence system and the new Franco-German fighter jet (FCAS).

Germany’s new warships will be able to attack targets on land and under water as well as providing air cover for other vessels.

Other companies interested in the MKS 180 warship tender were ThyssenKrupp TKAG.DE and German Naval Yards.

Reporting by Michael Nienaber and Sabine Siebold; Editing by Alison Williams and Jane Merriman