Contract worth several hundred million euros: Rheinmetall to modernise F123 frigate

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30 July 2026 – Rheinmetall has been awarded the contract to modernise the 143-meter-long frigate BAYERN at the end of the second quarter of 2026. The objective of the project is to ensure the operational readiness of the German Navy frigate, which entered service in 1996, until at least 2035 while adapting its capabilities to current operational requirements. The contract is valued in the mid-three-digit million euro range.

As part of the service life extension program key systems of the frigate will undergo comprehensive modernisation at Rheinmetall’s Neue Jadewerft shipyard in Wilhelmshaven until 2029. The work includes the replacement of the Combat Management System (CMS), the overhaul of essential shipboard engineering systems, and the modernisation of the radar sensor suite. In addition, the propulsion and drive systems will be overhauled, while key anti-submarine warfare (ASW) capabilities will be upgraded. These measures will bring the F123-class frigate up to the latest technological standards and sustainably enhance its capabilities for future operations.

The contract highlights the strategic importance of Rheinmetall’s service business within the Naval Systems division. Long-term maintenance, modernization, and lifecycle support are integral elements of the division’s portfolio, ensuring the operational readiness of complex naval systems over decades.

“We are now fully focused on delivering the project on schedule. The Neue Jadewerft shipyard has many years of experience in the modernization and maintenance of naval vessels—particularly frigates—and possesses extensive expertise in integrating complex maritime systems. Combined with our close cooperation with all project partners and our customer, these capabilities provide the foundation for delivering the ship to the German Navy on time and to the required quality standards,” said Tim Wagner, CEO of Rheinmetall’s Naval Systems division.

The vessel is currently berthed at Neue Jadewerft, where major components are being removed. Following this phase, BAYERN will be transferred to the shipyard’s dry dock.

Photo courtesy Rheinmetall

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Classification
Region
Europe
Analytical Domain
Operational
Primary Category / Secondary Categories
Weapons & Equipment / Logistics
Subcategory
New Weapon System
SALUTE Report
Size
Not specified
Activity
Rheinmetall awarded a contract to modernize the F123 frigate BAYERN
Location
Wilhelmshaven
Unit
Rheinmetall
Time
End of the second quarter of 2026
Equipment
Combat Management Systemradar sensor suitepropulsion and drive systemsanti-submarine warfare capabilities
Summary

Rheinmetall has been awarded a contract to modernize the F123 frigate BAYERN at its Neue Jadewerft shipyard in Wilhelmshaven, with work set to continue until 2029. The modernization aims to enhance the frigate's capabilities and ensure its operational readiness until at least 2035. Key upgrades include the Combat Management System, radar sensor suite, and anti-submarine warfare capabilities, with a contract value in the mid-three-digit million euro range.

Key Facts
  • Rheinmetall awarded a contract for the modernization of the F123 frigate BAYERN.
  • The contract is valued in the mid-three-digit million euro range.
  • Modernization includes upgrades to the Combat Management System and radar sensor suite.
  • The work will be conducted at Rheinmetall’s Neue Jadewerft shipyard in Wilhelmshaven until 2029.
  • The frigate is expected to remain operational until at least 2035.

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