U.A.E.’s EDGE Group, Italy’s Fincantieri Announce €30B Joint Venture for Naval Manufacturing

JV aims for global naval manufacturing, emphasizing non-NATO orders, frigates, and potential submarines.
  • Defensemirror.com bureau
  • 05:35 AM, February 22, 2024
  • 542
U.A.E.’s EDGE Group, Italy’s Fincantieri Announce €30B Joint Venture for Naval Manufacturing
U.A.E.’s EDGE Group, Italy’s Fincantieri agree to establish JV

EDGE Group and Fincantieri have officially entered into a term sheet to establish a joint venture (JV) with a focus on manufacturing naval vessels.

The term sheet formalization took place at Palazzo Marina in Rome, Italy, on Wednesday in the presence of key officials from both organizations and high-ranking military figures.

According to the agreement, EDGE will have a controlling 51% stake in the venture, while Fincantieri will provide management direction. The commercial pipeline for the joint venture is estimated to be around €30 billion, mainly concentrating on the production of sophisticated naval vessels. The JV is expected to gain prime rights to non-NATO orders, emphasizing the use of UAE Government-to-Government arrangements and export credit financing packages.

The collaboration aims to leverage strategic orders placed by select NATO member countries and capitalize on the attractiveness of the U.A.E. G2G arrangements.

The initial focus of the JV will be on the design and construction of frigates and other large vessels, expanding EDGE's operations and diversifying its maritime solutions portfolio. Additionally, there are aspirations to explore the development of a mid-size submarine program.

The agreement grants the JV strong cooperation to market its products internationally, highlighting its global ambitions and commitment to developing joint intellectual property and future designs. Exclusive rights to all future designs will be retained by the JV, which will also establish a dedicated design authority.

The incorporation of the joint venture is subject to various conditions precedent, as is customary for agreements of this nature. The agreement signifies a strategic step for both EDGE Group and Fincantieri, marking a significant move towards global collaboration in the naval manufacturing sector.

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