Naval Group, Fincantieri lay out 50/50 joint venture plans

Italy’s Fincantieri and French Naval Group have outlined plans for a possible future joint venture at the Euronaval conference taking place in Paris, France.

The latest agreement is the result of a year’s work during which the two sides looked at ways of creating “a more efficient and competitive” European shipbuilding industry and to reinforce their military naval cooperation.

The French and Italian governments announced their intention to establish an industrial Alliance between Fincantieri and Naval Group at the 34th Franco-Italian Summit held in Lyon on 27 September 2017.

Fincantieri and Naval Group cooperated since this date and submitted their proposal for such an alliance in July 2018 to the competent French and Italian Ministers, encompassing an industrial project and its envisaged roadmap, along with a description of the key initiatives.

Acknowledging the declaration of support by the French and Italian governments, and subject to each company’s board of directors’ approval, Fincantieri and Naval Group are ready to concretely launch the alliance in particular with the aim of setting forth the terms and conditions for the incorporation of a 50/50 joint venture.

Through this JV, Fincantieri and Naval Group will jointly prepare winning offers for binational programs and for the export market. The two companies will also look to foster a more efficient supply policy, to jointly conduct selected research and innovation activities and to encourage cross-fertilization between the two companies, with sharing of testing facilities/tools and expertise networks.

As of today, 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. The Flotte logistique (FLOTLOG) program is expected to start in 2019 with first two double-hull tankers delivered in 2025.

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.