{"id":18741,"date":"2018-10-24T17:25:26","date_gmt":"2018-10-24T17:25:26","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2018\/10\/24\/naval-group-fincantieri-join-forces-to-survive-competitive-global-shipbuilding-industry\/"},"modified":"2026-08-07T21:47:32","modified_gmt":"2026-08-07T21:47:32","slug":"naval-group-fincantieri-join-forces-to-survive-competitive-global-shipbuilding-industry","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/digital-show-dailies\/euronaval\/2018\/10\/24\/naval-group-fincantieri-join-forces-to-survive-competitive-global-shipbuilding-industry\/","title":{"rendered":"Naval Group, Fincantieri join forces to survive competitive global shipbuilding industry"},"content":{"rendered":"\n

ROME \u2014 Defying reports that their planned partnership is doomed to fail<\/a>, France\u2019s Naval Group and Italy\u2019s Fincantieri<\/a> have announced a joint venture to build and export naval vessels. <\/p>\n\n\n\n

The two state-controlled shipyards<\/a> said they were forming a 50-50 joint venture after months of talks to integrate their activities. The move comes as Europe\u2019s fractured shipbuilding industry faces stiffer global competition. <\/p>\n\n\n\n

The firms said in a statement that the deal would allow them to \u201cjointly prepare winning offers for binational programs and export market,\u201d as well as create joint supply chains, research and testing. <\/p>\n\n\n\n

Naval Group and Fincantieri first announced talks on cooperation last year after the latter negotiated a controlling share in French shipyard STX. But the deal was reportedly losing momentum due to resistance from French industry and a political row between France and Italy over migrants. <\/p>\n\n\n\n

The new deal falls short of the 10 percent share swap predicted by French Economy and Finance Minister Bruno Le Maire earlier this year, and far short of the total integration envisaged by Fincantieri CEO Giuseppe Bono. <\/p>\n\n\n\n

The statement called the joint venture the \u201cfirst steps\u201d toward the creation of an alliance that would create \u201ca more efficient and competitive European shipbuilding industry.\u201d<\/p>\n\n\n\n

Naval Group CEO Herv\u00e9 Guillou, speaking at the Euronaval trade expo in Paris on Oct. 24, said the alliance is based on \u201ctwo countries sharing a veritable naval ambition.\u201d<\/p>\n\n\n\n

The joint venture is necessary because the \u201ccontext of the global market has changed drastically,\u201d he added, specifically mentioning new market entrants Russia, China, Singapore, Ukraine, India and Turkey.<\/p>\n\n\n\n

When asked about an initial product to be tackled under the alliance, Guillou acknowledged: \u201cThe answer is simple: there is nothing yet.\u201d<\/p>\n\n\n\n

However, the firms said they are working toward a deal to build four logistics support ships for the French Navy, which will be based on an Italian design. <\/p>\n\n\n\t