This is how Fincantieri sets sail with Leonardo (Osn) and Naviris
Orizzonte Sistemi Navali (Osn), the joint venture between Fincantieri (51%) and Leonardo (49%), has signed the contract to build 3 new generation patrol vessels for the Navy for a value of 925 million euros. And Naviris (jv Fincantieri-Naval Group) and Eurosam have obtained a contract for the mid-life modernization of the Italian and French Horizon-class frigates.
Fincantieri sets sail both with compatriot Leonardo (Osn) and with the French Naval Group.
On 31 July Orizzonte Sistemi Navali (Osn), the joint venture owned by Fincantieri and Leonardo with stakes of 51% and 49% respectively, signed the contract for the construction of three new generation patrol vessels (Ppx), as part of the OPV (Offshore Patrol Vessel) acquisition program of the Italian Navy. The contract includes options relating to a further three units and the infrastructural adjustments necessary for the naval bases of Augusta, Cagliari and Messina, where the ships will be based.
The total value of the contract for the first three vessels is equal to 925 million euros, including the related logistic support services, specifies the joint note from Fincantieri and Leonardo.
"The contract represents around 10% of Fincantieri's order intake and around 1.5% of Leonardo in 2022", commented the analysts of Intermonte, quoted by Radiocor . 'The contract is small but we think it has above average margins,' adds Banca Akros.
As far as Fincantieri is concerned, the quotations are supported today in Piazza Affari (among the best stocks of the FTSE MidCap) also by the news of a second order, by the European organization Occar, assigned to Naviris (the joint venture with 50% of Fincantieri and Naval Group,) and Eurosam, for a total of 1.5 billion for the mid-life modernization of the French and Italian Horizon-class frigates. The subcontract with Fincantieri is worth around 211 million. “This contract is a key step for Naviris in demonstrating its ability to execute a multinational program and further reinforces the joint venture's role as a center of gravity in the relationship between Fincantieri and Naval Group, also in collaboration with Leonardo and SIGEN (ELT and Thales )”, commented Damien Raby, CEO of Naviris and Enrico Bonetti, COO of Naviris.
"For Fincantieri, orders are taken and visibility increases on the development of the military business (around 25% of group turnover) which we recall is characterized by above-average margins and more favorable working capital dynamics", notes Equita, cited again by Radiocor .
All the details.
THE CONTRACT FOR THE NEW NAVY PPX
So in the next few days Orizzonte Sistemi Navali will conclude the sub-supply contracts with Fincantieri and Leonardo, which will have a value of approximately 540 and 255 million euros respectively.
The OPV program responds to the need to ensure adequate presence and surveillance capabilities, maritime surveillance, control of merchant traffic, protection of communication lines and the exclusive economic zone, as well as activities to protect against threats deriving from marine pollution, such as of toxic liquids.
“This signing represents a notable commercial success, because the OPVs belong to the FCX family, the cornerstone of Fincantieri's new offer in the defense sector on a global scale. It is also the confirmation of the Group's management ability to play the role of strategic partner of our Marina, one of the most advanced in the world” commented the CEO of Fincantieri Pierroberto Folgiero.
THE CHARACTERISTICS OF PPX
Thus, the note reports, the PPXs will have a length of approximately 95 meters, a displacement of 2,300 tons and the capacity to accommodate 97 crew members on board. Among the most innovative features is the naval cockpit, developed for the Multipurpose Offshore Patrol Boats (PPA) of the MM on the basis of a truly revolutionary requirement: an integrated station, co-produced by Leonardo and Fincantieri NexTech, which allows the conduct of the ship and aeronautical operations by only two operators, the pilot and the co-pilot, who have incorporated the figures of the officer of the watch on the bridge and the commander. From this position, located on the command bridge, it is in fact possible to manage both the machines, the rudders and the platform systems and some functions of the combat system.
THE COLLABORATION BETWEEN FINCANTIERI AND LEONARDO
“This contract rewards and brings together the best of Italian technology. Leonardo and Fincantieri, through OSN, are able to offer "state of the art" solutions for national security. This is the result of a solid and prospective synergy. The Navy has the guarantee of a long-term capacity" commented Roberto Cingolani, Leonardo's CEO.
“Through the relaunch of Orizzonte Sistemi Navali, the programme, further consolidates the collaboration with Leonardo, allowing us to concentrate the ship system integration skills and, in a broader sense, reaffirms the value of our country-system” Folgiero echoes.
Just a few weeks ago Fincantieri and Leonardo had obtained the MCO program of Cavour and Orizzonte class ships. On 20 July Orizzonte Sistemi Navali (Osn) signed, with the Directorate of Naval Armaments of the General Secretariat of Defence/DNA, the Framework Agreement for Maintenance in Operating Conditions (MCO) for the aircraft carrier Cavour and the Orizzonte class destroyers Andrea Doria and Caio Duilio of the Italian Navy.
For some time the two CEOs of the national defense giants have underlined the importance and the need to strengthen cooperation in the pre-existing framework of Orizzonte Sistemi Navali.
CINGOLANI'S STRATEGY
Recently, speaking at the third edition of MedOr, an appointment promoted by the Leonardo Foundation, Cingolani underlined that with his Fincantieri counterpart "we met a few days ago" and that "we are new", and therefore "we must "collaborate". And it being understood that Fincantieri "makes things that float" and Leonardo "things that fly", there are electronic systems to integrate, "there are things we can do together".
And Cingolani then hinted at the possibility of signing a protocol between Leonardo and Fincantieri which aims to strengthen the margins of collaboration between the two giants of the defense industrial sector, reported Repubblica .
SHARED BY FOLGIERO
For some time Pierroberto Folgiero, CEO of Fincantieri, has been underlining the need to strengthen "the collaboration with Leonardo and strengthen Orizzonte Sistemi Navali to increase the integration between platforms and combat systems". “We also want to increase joint marketing.” This is what Folgiero declared in an interview with Defense News at the end of last year.
ALSO THE PROGRESS WITH NAVIRIS ON THE ROAD FOR FINCANTIERI
However, there is not only the route shared with Leonardo in the military business for Fincantieri.
As mentioned at the beginning, the group headed by Folgiero is also pursuing programs with its French rival Naval Group as part of the 50/50 joint venture Naviris, created in 2020.
On 31 July Occar (Organization for Joint Armament Cooperation) awarded Naviris and Eurosam a contract for the mid-life upgrade (MLU) of the Italian and French Horizon-class frigates. The two co-contractors, Naviris and Eurosam, will work in close collaboration with their shareholders, Fincantieri and Naval Group for the frigate, MBDA Italia, MBDA France and Thales for the new generation of the Principal Anti-Air Missile System & Long-Range Radar (PAAMS & LRR), specified the note from the Trieste company.
The value of the contract for Naviris and Eurosam is 1.5 billion euros. More specifically, Naviris will finalize the subcontract contracts in the next few days, including the one with Fincantieri, which will have a value of 211 million euros and constitutes a transaction between related parties of greater significance defined in compliance with the related applicable legislation.
Finally, the contract falls within the scope of the memorandum of understanding relating to the Mid-Life Upgrade of the Horizon class naval units, signed by Italy and France during the recent Paris Air Show.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/ecco-come-fincantieri-salpa-con-leonardo-osn-e-naviris/ on Tue, 01 Aug 2023 10:48:17 +0000.