German company will pay compensation to Turkey over delay in submarine delivery

BERLIN – Cihan News Agency

Germany’s ThyssenKrupp will pay 2 million euros of compensation to Turkey as the company has not even begun to produce the submarines, though the company had agreed to make the first delivery in 2015, sources say.

In 2009, the Turkish government sealed a deal worth 2.5 billion euros with Howaldtswerke-Deutsche Werft (HDW), a subsidiary of ThyssenKrupp Marine Systems, based in Kiel, to co-produce six U 214-type diesel submarines for the Turkish Navy. Production was to start in 2011, and the first submarine was to be delivered in 2015, according to the deal.

The company has not even begun to make the production, however. HDW will pay around 2 million euros of compensation to Turkey, according to sources.

Behind the submarine crisis between Turkey and Germany is a disagreement over which software will be used by the submarines. Turkey wants to use its own software, although HDW disagrees to this due to several technical difficulties, sources add.