EDGE Group and Fincantieri have entered into a term sheet aimed at creating a joint venture (JV) to capitalise on global shipbuilding opportunities with a focus on the manufacturing of a broad range of sophisticated naval vessels. EDGE will hold a 51% stake in the venture, which has a commercial pipeline valued at approximately 30 billion euros, with management direction provided by Fincantieri. The Abu Dhabi-based JV will be awarded prime rights to non-NATO orders, especially leveraging on the attractiveness of UAE G2G arrangements and export credit financing packages, along with a number of strategic orders placed by select NATO member countries. At Palazzo Marina, Rome, Italy, in the presence of Matteo Perego di Cremnago, Undersecretary of State for Defence, Admiral Enrico Credendino, Chief of the Italian Navy, Lieutenant General Luciano Portolano, Italian Secretary General of Defence/National Armaments Director, and, for Fincantieri, of General Claudio Graziano, Chairman, and of Dario Deste, General Manager of the Naval Vessels Division, the term sheet to create the JV was formalised through the signatures of Hamad Al Marar, Managing Director and CEO of EDGE Group, and of Pierroberto Folgiero, CEO and Managing Director of Fincantieri.
Pierroberto Folgiero, Fincantieri Group CEO and Managing Director, said: “We are honoured and eager to join forces with EDGE Group with the aim of creating a unique industrial platform able to address with maximum entrepreneurship and distinctive competencies the sizable market opportunities originated in UAE and from UAE to the international markets”.
Hamad Al Marar, EDGE Group Managing Director and CEO, said: “Through this transformative joint venture with Fincantieri, we are not just expanding EDGE’s diverse capabilities in shipbuilding but setting a new benchmark for collaboration and knowledge exchange in the global maritime industry. This partnership embodies our commitment to innovation, leveraging Fincantieri’s unmatched expertise to explore opportunities in the global market. This venture is a testament to our strategic vision of growth through collaboration, promising a future of technological advancements and enhanced naval defence solutions.”
This agreement grants the JV strong cooperation to market its products with the Navy of different countries in the world, underlining its global ambition and commitment to developing joint intellectual property and future designs. This strategic agreement significantly enhances EDGE’s ability to design and build frigates and other large vessels, broadening its range of operations and marking a crucial advancement in the diversification of its maritime solutions portfolio. The JV also harbours ambitions to develop an underwater program for mid-size submarines. The incorporation of the JV is subject to a series of conditions precedent, customary for an agreement of this kind. The JV will concentrate on sales, commercial operations, and engineering for design and service, taking charge of developing shared intellectual property and retaining exclusive rights to all future designs. Furthermore, the JV will set up a dedicated design authority, opening up opportunities for highly skilled Emiratis, and drawing in international expertise to support this innovative and strategic initiative.
Fincantieri brings to the table an illustrious history and extensive future-proof expertise, having constructed over 7,000 ships, and its role as a key supplier to various Navies and the cruise ship industry. This collaboration represents a pivotal step in redefining global naval shipbuilding, emphasising both companies’ leadership in high-value segments and their commitment to innovation, expertise, and global expansion. Fincantieri S.p.A. is an Italian shipbuilding company based in Trieste, Italy. Already the largest shipbuilder in Europe, after the acquisition of Vard in 2013, Fincantieri group doubled in size to become the fourth largest in the world (2014). The company builds both commercial and military vessels. The company is listed on the Borsa Italiana (Milan Stock Exchange) and is a component of FTSE Italia Mid Cap Index.
