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FINCANTIERI AND NAVAL GROUP ALLIANCE WINS GOVERNMENTAL SUPPORT

Thursday, October 25, 2018 

Further details have emerged of the alliance between Fincantieri and Naval Group, an initiative announced in September 2017 at the 34th Franco-Italian Summit to facilitate the creation of a more efficient and competitive European shipbuilding industry and reinforce naval cooperation.

Fincantieri and Naval Group submitted their proposal for such an Alliance in July 2018 to French and Italian Ministers. French and Italian governments have acknowledged, subject to each company’s Boards of Directors’ approval, that Fincantieri and Naval Group will set up a 50/50 Joint Venture, marking a first step towards the creation of the Alliance.

The JV intends to jointly prepare winning offers for binational programs and export market; to foster a more efficient supply policy (cross-sourcing, best value for money, scale effect, etc.); to jointly conduct selected research and innovation activities aiming at providing operational superiority to customers, and; to encourage cross-fertilization between the two companies, with sharing of testing facilities/tools and expertise networks.

Naval Group and Fincantieri have already engaged in a common industrial collaboration to provide the French Navy with four logistic support ships (LSS), based on the design of the Italian Vulcano LSS. Furthermore, as of 2019 and with the support of both Ministries of Defense, Naval Group and Fincantieri contemplate to present a common offer for the first studies for the Mid-Life Upgrade of the French and Italian Horizon-class destroyers with a common Combat Management System (CMS).

A Government-to-Government Agreement would be needed to ensure the protection of sovereign assets, a fluid collaboration between the French and Italian teams and encourage further coherence of the National assistance programs, which provide a framework and support export sales.

Fincantieri and Naval Group consider that this Alliance represents a great opportunity for both groups and their eco-systems, by enhancing their ability to better serve the Italian and French navies, to capture new export contracts, to increase research funding and, ultimately, improve the competitiveness of both French and Italian naval sectors.

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