All the orders in the pipeline of Fincantieri and Leonardo for Egypt

All the orders in the pipeline of Fincantieri and Leonardo for Egypt

The commercial potential of Leonardo and Fincantieri with Egypt in the wake of the 2 Fremm. The comment by Gianandrea Gaiani, director of Defense Analysis

"Italic tafazzismo" was once defeated. In fact, the long story of the military orders that Egypt has been asking Italy for some time, starting from the sale of two Fremm frigates already destined for the Italian Navy, seems to have finally unlocked.

According to reports from the Ansa agency, the green light would have arrived after the phone call of 7 June between Prime Minister Giuseppe Conte and Egyptian President Abdel Fattah al-Sisi.

THE FINCANTIERI FRIGATES

The two frigates that Fincantieri will soon deliver to Egypt (Spartaco Schergat and Emilio Bianchi) for an estimated value of about 1.2 billion euros will be replaced by new units in the ranks of the Navy but open the way to orders for other frigates , patrol boats, combat and training aircraft.

THE INDISCRIPTIONS

In recent days the pan- Arab weekly The Arab Weekly wrote that Italy could sell to Egypt as many as 6 Fremm frigates (the 2 mentioned plus 4 other new ones) and 20 Fincantieri offshore patrol boats, as well as 24 Eurofighter Typhoon fighters and numerous Leonardo's M-346 training aircraft, plus an observation satellite, for a total value of 10.7 billion dollars.

ESTIMATES

Other sources in the past reported slightly different numbers as well as other estimates bring the total potential value of the orders, including missiles for ships and planes, to about 15/16 billion euros, that is triple the entire export of the Italian Defense in 2019, just over € 5 billion including the € 871.7 million of the order for 32 Leonardo AW139 and AW189 helicopters.

ORDERS FOR LEONARDO, FINCANTIERI AND MORE

Of course, these are orders still to be confirmed and, if necessary, to be negotiated with Egypt but which constitute an opportunity for the entire Italian industry (starting with Fincantieri, Leonardo and Elettronica) which will have to face a post-crisis period. Covid-19 focusing on exports will be produced for Defense since it will be difficult to rely on large orders in the civil sectors.

THE OPPORTUNITIES FOR LEONARDO AND FINCANTIERI

Despite the risk that political evaluations would compromise them, the opportunities that open up with Egypt go far beyond the mere aspect of the export of Defense products to take on the contours of the strategic agreement.

THE ROLE OF ITALY AND LEONARDO

If we combine the success in Cairo with that recently recorded in Qatar, rival of Egypt and other major buyer of ships, submarines, missiles and helicopters made in Italy, it is clear that Rome is carving out, thanks above all to its strategic companies, a role of great importance in the Arab world that offers political and diplomatic opportunities in terms of influence and prestige that must be seized.

THE FUNCTION OF EGYPT

Cairo has the most impressive and powerful military forces in the Middle East and Africa and in the last 5 years it has invested many billion in weapon systems and platforms, purchasing them mainly in Russia (about 10 billion), France (8), USA ( 2.5), Germany (4.5), China and Belarus.

WHO SUPPORTS EGYPT

An expense account paid for the most part thanks to financial aid from Cairo to the United Arab Emirates and Saudi Arabia while the United States provides Egypt with 1.2 billion dollars per year to be spent on "made in the USA" products.

THE EFFORT OF EGYPT

Although the Egyptian economy is not sailing in good water and the Covid-19 epidemic has certainly not improved the situation (Finance Minister Mohamed Maait has made it known that tax revenues have fallen by $ 7.6 billion in the past three months) the outlook is very positive thanks to the gas export rents of the immense deposits detected by Eni off the coast of Alessandria.

(Excerpt from an article published in Defense Analysis)


This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/fremm-allegitto-quale-futuro-commerciale-per-litalia/?utm_source=rss&utm_medium=rss&utm_campaign=fremm-allegitto-quale-futuro-commerciale-per-litalia on Sat, 20 Jun 2020 05:15:49 +0000.