Damen Wins Design Role in £2.4 Billion UK-Dutch Warship Deal

Key Points

• The UK and the Netherlands have signed a £2.4 billion ($3.2 billion) agreement to jointly build eight new amphibious transport ships.
• Dutch shipbuilder Damen Shipyards is carrying out design work on the vessels, according to a person familiar with the matter.
• The ships will be built in UK shipyards working alongside Dutch industry.
• The UK government has not yet named which domestic firm — BAE Systems Plc, Babcock International Group Plc, or Navantia UK — will construct the vessels.
• A UK official said a commercial process to select the builder would be launched in due course.
• Babcock’s Nick Hine said the company looked forward to contributing to the programme as it develops.
• Navantia UK said it was working with the government to deliver sovereign defence industrial capability.
• Each nation will operate four of the eight vessels as part of a strengthened UK-Netherlands amphibious force.
• The deal was signed during the NATO summit in Ankara, Turkey.
• It follows Germany’s decision to scrap a €10 billion contract with Damen for six F126 frigates, handing the programme to Rheinmetall AG instead.
• BAE Systems previously secured a £10 billion deal to supply Norway with Type 26 frigates, and the UK is pursuing similar contracts with Sweden, Denmark and Turkey.

Ankara (Britain Today News) July 09, 2026 — Damen Shipyards has been brought in to lead design work on a new fleet of amphibious transport ships as part of a £2.4 billion ($3.2 billion) UK-Netherlands defence agreement, announced this week at the NATO summit in Turkey.

The Dutch shipbuilder is working alongside British and Dutch officials on the design of the vessels, according to a person familiar with the matter, who spoke on condition of anonymity given the sensitivity of the discussions. The programme, confirmed in a British government statement issued this week, will see the ships constructed in UK shipyards working in partnership with Dutch industry.

While the design work has been assigned to Damen, the identity of the UK company that will physically build the ships remains undecided. Three firms are in contention: BAE Systems Plc, Babcock International Group Plc, and Navantia UK, the British arm of the Spanish shipbuilder that owns the Harland & Wolff yard in Belfast. A UK official said the government intends to launch a formal commercial process to select a builder in due course. BAE Systems declined to comment when approached.

What Is the UK-Netherlands Warship Deal Worth?

The agreement, signed by the two governments during NATO talks in Ankara, is valued at £2.4 billion, equivalent to roughly $3.2 billion. It covers the design and construction of eight amphibious transport ships in total, split evenly between the two nations. Each country will take delivery of four vessels once construction is complete, with the ships intended to transport troops, vehicles and equipment, including drones, in future operations.

The figure marks one of the larger bilateral shipbuilding agreements struck between the two countries in recent years, and it comes at a time when both London and The Hague are under pressure to modernise ageing amphibious fleets. Officials involved in the talks described the programme as a long-term commitment rather than a single procurement exercise, with design, construction and eventual fleet integration all forming part of the wider agreement signed this week.

What Are the Specifications of the New Vessels?

The vessels being developed under the agreement are expected to measure around 160 metres in length, placing them among the larger amphibious transport ships currently in service or under development among NATO navies. Their core purpose will be to move troops, vehicles and equipment between ports and operational areas, with flight decks and mission bays configured to support both traditional amphibious tasks and newer requirements around drones and autonomous systems.

The inclusion of drone-support capability reflects a broader shift in how the UK and Netherlands are approaching amphibious warfare, moving away from vessels designed solely around landing craft and helicopters towards ships that can also launch, recover and control uncrewed systems. This dual capability is expected to shape much of the detailed design work now being carried out by Damen.

What Programme Does This Replace?

The new amphibious transport ships are set to succeed a generation of ageing vessels that have been in service for decades. Earlier UK planning had explored a larger fleet of replacement ships under a different programme structure, before budget considerations led to a reduced order of four vessels for the Royal Navy under the current agreement. The Netherlands faces a similar replacement need for its own ageing amphibious ships, making the joint procurement route an efficient way for both navies to renew capability while sharing design and support costs.

Why Was Damen Chosen for the Design Work?

According to the person familiar with the matter, Damen Shipyards has been engaged to carry out the design work that will underpin construction of the new ships. The company was not named directly in the UK government’s public statement, and the precise scope of its role has not been formally disclosed. Damen’s involvement follows years of it pitching amphibious ship concepts to European navies, and the design work secured through this agreement marks a significant contract win for the firm.

Damen has built a long-standing reputation in the amphibious ship sector, and its design portfolio spans vessels of varying sizes intended for troop transport, vehicle carriage and humanitarian operations. That breadth of experience is understood to be a key factor behind its selection for the design phase of the UK-Netherlands programme, even as the question of which shipyard will physically construct the vessels remains open. Neither the UK nor Dutch government has published further technical detail on the design brief given to the company.

Which Company Will Build the Ships?

That question remains unresolved. The UK government has stopped short of naming a preferred contractor, leaving BAE Systems, Babcock International Group, and Navantia UK as the three domestic firms positioned to compete for the construction work. A UK official said the process to appoint a builder would begin at a later stage, without giving a firm timeline. BAE Systems was approached for comment and declined to respond.

What Has Babcock Said About the Programme?

Babcock has signalled its interest in taking part in the shipbuilding effort. Nick Hine, the company’s Chief Growth Officer and chief executive of its marine business, responded to questions in an emailed statement, saying:

“We look forward to working with both governments, contributing our expertise and capabilities, as this important programme and partnership move forward.”

What Has Navantia UK Said About Its Role?

Navantia UK also addressed the announcement. A spokesperson for the company said it was “working with the government to deliver sovereign defence industrial capability to support the Defence Investment Plan.” The statement did not confirm whether Navantia UK has formally bid for the construction contract, and the company has not disclosed further detail on its plans for the programme.

How Many Ships Will Each Country Operate?

Under the terms of the agreement, the UK and the Netherlands will each operate four of the eight vessels being produced. The ships form part of what the UK Defence Ministry described as a strengthened UK-Netherlands amphibious force, building on the two countries’ existing defence relationship. The vessels are intended to be 160 metres in length and will be capable of transporting troops, vehicles, equipment and drones as part of joint operations.

Where and When Was the Deal Signed?

The agreement was signed during the NATO summit held in Ankara, Turkey, this week. The timing placed the announcement alongside a broader set of discussions among NATO allies on defence cooperation and industrial partnerships. Alongside the shipbuilding agreement, the UK and the Netherlands also agreed to accelerate cooperation on autonomous and uncrewed technology, extending their defence relationship beyond the vessels themselves.

Why Is This a Significant Win for Damen After Recent Setbacks?

The design contract represents a notable turnaround for Damen following a difficult period. Germany recently terminated a €10 billion ($11.4 billion) contract that had been awarded to the Dutch shipbuilder for six F126 anti-submarine warships. Berlin scrapped the arrangement after deciding to move the programme to German defence firm Rheinmetall AG, citing production problems that had emerged over the past year. The UK-Netherlands design role gives Damen a fresh foothold in a major European naval programme after losing the German contract.
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How Does This Deal Compare With the UK’s Other Recent Warship Contracts?

The agreement follows a pattern of recent UK naval export success. BAE Systems secured a £10 billion contract last year to supply Norway with Type 26 frigates, one of the UK defence industry’s largest recent wins. Building on that momentum, the UK is now seeking to strike similar defence contracts with Sweden, Denmark and Turkey, positioning its shipbuilding sector for further international deals in the coming years.

Taken together, the Norway frigate contract and the new UK-Netherlands amphibious ship agreement suggest a period of sustained activity for British shipyards, with multiple programmes now competing for capacity, skilled labour and drydock space. Industry observers note that this pipeline of work, spanning frigates, amphibious vessels and potential future export contracts, is likely to shape investment decisions at UK shipyards for years to come, regardless of which company is ultimately chosen to build the new amphibious ships.

What Comes Next for the Programme?

With the design phase now underway through Damen, attention turns to the UK government’s forthcoming commercial process to select a domestic builder. BAE Systems, Babcock International Group and Navantia UK all stand to benefit from the construction work, though no timeline for a decision has been confirmed. The accelerated cooperation on autonomous and uncrewed technology agreed alongside the shipbuilding deal suggests the partnership between the UK and the Netherlands is likely to expand further as the programme progresses.

For now, the immediate focus remains on Damen’s design work and the UK government’s next steps towards launching a formal competition among domestic shipbuilders. Both governments have indicated that further announcements on construction timelines and shipyard selection are expected in the coming months, as the two nations move from agreement to delivery on one of their most significant joint defence programmes in decades.