The giant of the Italian cantieristica Fincantieri is competing for over 20 billion euros in military contracts. World Instability and the numerous wars that have broken out in recent years, they have pushed many countries inside and outside Europe to invest in their armies and also strengthen the Navy.
Fregate and submarine remain among the most important military equipment for a state that wants to guarantee their safety. Fincantieri is trying to win numerous contracts to update fleets all over the world, even beyond European borders.
Fincantieri’s affairs with defense in Europe
Europe is investing a lot in the defense. The strengthening program of continental armies against Russian threats and the increase in military spending asked by NATO at 5% of the GDP represent, for companies in the sector, an opportunity that has rarely occurred in recent decades. States and private individuals are willing to spend a lot to create and develop armaments.
Fincantieri, a company controlled by the Italian state that deals with building boats, is positioned in a strategic way in this context. There are two main opportunities in Europe:
- a tender launched by Norway for the supply of 5 Constellation class frigates, of 4 billion euros;
- Participation in the Orka, Poland project, for the acquisition of 2 latest generation submarines, of 2.4 billion euros.
In Norway, Fincantieri is present with the subsidiary Vard, but will have to face the competition of cantieristic giants such as the French Naval Group, the British Bae Systems and the joint venture between TKMS and Damen. In Poland, the hopes of winning the supply are mainly fueled by the excellent institutional relations between Rome and Warsaw.
The contract in Saudi Arabia and the joint venture in the Emirates
However, the possible affairs of Fincantieri do not limit themselves to European expansion. The Arab States of the Middle East are also engaged in a modernization of their army in response to the increase in instability in the region. Saudi Arabia expressed the desire to add 5 frigates to its fleet, even if it has not yet banned a race.
In total it would be a 5 billion euro deal, which Fincantieri could make thanks to his controlled Arabic, Fincantieri Arabia for Naval Services. Similar initiatives could soon be undertaken by Qatar and Arab Emirates. In the latter country, Fincantieri has embarked on a joint venture with the Holding for the Sovereign Defense Emiratin Edge, called Maestral.
The opportunities in the Far East
Finally, there is the Far East. Fincantieri has already been awarded, in Indonesia, the supply of two PPAs, multi -red combat ships, for 1.8 billion euros. Always Indonesia would like to expand its fleet of submarines, up to 12 units, adding 10 to the French Scorpène Evolved already ordered. The Italian company could always propose with its latest generation U212NFS.
Instead, the project for the supply of a multi -rocker support ship to Malaysia is worth 1 billion euros. Here Fincantieri already has an agreement with Enra Energy Solutions, a local company that deals with maintenance and logistics, to convince the government that the expense will also be an investment in its local industry.
