Fincantieri, Finmeccanica Win Italian Navy LHD Contract

 

Fincantieri, one of the world’s largest shipbuilding groups and reference player in the naval shipbuilding industry, and Finmeccanica, Italy’s leading manufacturer in the high technology sector, have been awarded the contract for the construction and equipment of one multipurpose amphibious unit (LHD) for the Italian Navy.

The total value of the contract is over 1.1 billion euros, with Fincantieri’s share amounting to approx. 853 million euros and Finmeccanica's to about 273 million euros. The delivery of the unit is scheduled in 2022.

The contract with the consortium (Raggruppamento Temporaneo di Impresa – RTI), consisting of Fincantieri, agent, and Finmeccanica, through its subsidiary Selex ES, principal, was signed on behalf of the Ministry of Defence by the Central Unit for Naval Armament (NAVARM) of the General Secretariat.

The consortium (RTI) was established in accordance with the tight cooperation agreement in the field of naval vessels construction signed between Fincantieri and Finmeccanica last October. Pursuant to the agreement, Fincantieri acts as a sole interface to the client, while at the same time allowing to enhance Finmeccanica’s products range in the naval field and the technical and commercial synergies between the two largest national groups in the naval field.

In general, this multi-year programme for the renewal of the Navy’s fleet (known as the “Defence Act”) employs a total funding of 5.4 billion euros and, in addition to the aforementioned LHD unit, foresees the construction of six patrol vessels, with four more in option, and one logistic support unit. 

In particular:
•    one multipurpose amphibious unit  (LHD or Landing Helicopter Dock)
•    one logistic support unit (LSS or Logistic Support Ship)
•    six patrol vessels (PPA or Multipurpose Offshore Patrol Ship) and four more in option

The fundamental characteristic common to all three classes of ships is their high level of innovation providing them with a considerable degree of efficiency and flexibility in serving different mission profiles. In particular, these are dual use vessels, meaning that they may be used for both standard military purposes and for civil protection and rescue at sea operations. They also have a low environmental impact thanks to a state-of-the-art auxiliary propulsion system generating a low level of pollution emissions (electric engines) and biological waste control system.

In addition to building the vessels at its shipyards, Fincantieri will provide support over the lifecycle of the vessels in the first ten years, through the supply of logistic services (training courses, spare parts, technical documentation) during the construction of the vessels and of ISS, In-Service Support, (maintenance services), carried out during post-delivery operations, as well as components and naval machinery produced by the Marine Systems and Components Business Unit, such as shaft lines, wheelhouse, maneuvering propellers, fin stabilizers and other handling systems.

Finmeccanica, through Selex ES, will act as prime contractor for the new unit’s entire combat system. The system will support landing craft, provide vessel self-defence and coordinate and control operations in concert with other naval and ground forces. Selex ES will also provide all the sensor systems including the X band, four-fixed-face, multifunctional scanned-array radar system and also the latest generation integrated communications. Finmeccanica-Selex ES will deliver and integrate all systems, including those of OTO Melara, WASS, and Elettronica, and is also responsible for the provision of support throughout the first decade of use including Integrated Logistic Support (ILS) and In-Service Support (ISS).

Fincantieri’s Chief Executive Officer, Giuseppe Bono, commented: “The announcement of this additional unit completes the first part of the renewal of our Navy’s Fleet, one of the world’s most significant defence programmes of the last years. We are extremely satisfied and excited to be leaders of such an important project, both technically and industrially. It confirms that we are a reference producer worldwide as well in the naval segment, either for the domestic and foreign markets. Fincantieri all will work at this programme with the highest commitment in order to realize on time extremely high quality products”.    

Finmeccanica’s Chief Executive Officer and General Manager, Mauro Moretti, said:“The contract award represents a new and significant contribution by Finmeccanica and Fincantieri to the Italian Navy's important fleet renewal programme. All of the systems designed and developed for the new dual-use LHD naval unit are based on the most advanced technology, boosting the efficiency of solutions proposed by Finmeccanicaandstrengthening its position in the naval sector. The group will continue to invest in this sector, with the goal of increasing the value of its products and solutions able to achieve significant success, also in  international markets”.