Fincantieri is establishing a joint venture with the Arab defence group Edge to primarily win and deliver orders in naval shipbuilding.
Edge is reportedly one of the world’s leading high-tech and defence groups. The new joint venture with Fincantieri will be based in Abu Dhabi. The focus will be on naval shipbuilding[ds_preview].
Edge will, therefore, hold 51% and will contribute an order backlog of around €30 billion. Abu Dhabi Ship Building (ADSB) is part of the group. Fincantieri will provide the future management. The new company will reportedly receive the main rights for non-NATO orders.
Fincantieri hopes for more orders
This strategic agreement will significantly strengthen Edge’s ability to design and build frigates and other large naval vessels. In addition to frigates and corvettes, ADSB also has smaller attack boats in its shipbuilding portfolio. Medium-sized submarines are also to be developed and built in the future. The establishment of the joint venture is still subject to the usual reservations and approval by the competition authorities.
The establishment of the joint venture is subject to a number of conditions precedent, as is usual for an agreement of this kind.
“We are creating a unique industrial platform to take advantage of the significant market opportunities that exist in the Emirates and international markets,” said Pierroberto Folgiero, CEO and Managing Director of the Fincantieri Group. The Italian shipyard group has built more than 7,000 ships.
