France and Italy forged a military shipbuilding alliance on Friday, June 14, as state-controlled Naval Group and Fincantieri signed off on a 50-50 joint venture that will bid for Franco-Italian warship projects and sell to the world market, reported Reuters.
The alliance reflects the two countries’ desire to fend off competition in naval shipbuilding from the likes of China, the United States, and Russia.
It is targeting orders worth up to €5 billion (US$5.63 billion) over the next decade. Naval Group stated the joint venture aims to build 10-15 warships in that period, with synergies estimated at 10-15%.
“It is the product of a shared industrial ambition,” Herve Guillou, chief executive of Naval Group told reporters on a call.
“We are by far the two biggest naval shipbuilders in Europe, but we cannot remain competitive and maximize our resources if we rely only on our domestic markets.”