Fincantieri and Edge join forces for the joint venture in Abu Dhabi: it will create a 30 billion business
Edgeone of the world‘s leading advanced technology and defense groups, and Fincantierione of the largest shipbuilding companies in the world, have signed a term sheet for the creation of a joint venture (JV) to seize global shipbuilding opportunities, with a focus on the production of a wide range of naval vessels and a business based in the United Arab Emirates with an estimated value of 30 billion euros. Edge will hold a stake in 51% in the joint venture while the management direction will be entrusted to Fincantieri.
The joint venture, based ad Abu Dhabi, will have pre-emptive rights for non-NATO orders, in particular capitalizing on the attractiveness of the UAE’s G2G agreements and export credit financing packages, together with a number of strategic orders placed by some selected NATO member countries . The JV will have strong cooperation in the commercialization of its products with navies of several countries around the world, in line with its global ambition and commitment to the development of joint intellectual property and future designs.
This strategic agreement enhances the capacity of Edge to design and build frigates and other large vessels, broadening its reach and marking a crucial advance in diversifying its portfolio of maritime solutions. The JV also aims to develop the underwater sector with a medium-sized submarine program. The establishment of the JV is subject to a series of preliminary conditions, usual for an agreement of this type.
Hamad Al MararCEO and general manager of Edge Grouphe has declared: “Through this transformative joint venture with Fincantieri we are not only expanding EDGE’s diverse capabilities in shipbuilding, but we are establishing a new benchmark for collaboration and knowledge exchange in the global maritime industry. This partnership embodies our commitment to innovation, leveraging Fincantieri’s incomparable expertise to explore opportunities in the global market. This joint venture is a testament to our strategic vision of growth through collaboration, promising a future of technological advancements and improved naval defense solutions”.
The JV will focus on sales, business operations and engineering for design and technical support, taking responsibility for developing shared intellectual property and maintaining exclusive rights to all future designs. Furthermore, the JV will establish a dedicated design authority, opening up new opportunities for highly skilled Emiratis, and attracting international expertise to support this innovative and strategic initiative.
Pierroberto FolgieroCEO and general manager of Fincantieri Groupsaid: “We are honored and excited to join forces with Edge Group with the aim of creating a one-of-a-kind industrial platform capable of seizing with maximum entrepreneurial spirit and distinctive skills the notable market opportunities originating in the Emirates United Arab Emirates and extend from the Emirates to international markets.”
The term sheet with the signatures of Hamad Al MararCEO and general manager of Edge e Pierroberto FolgieroCEO and general manager of Fincantieri was formalized at Palazzo Marina, in Rome, in the presence of Matteo Perego of Cremnago, Undersecretary of State for Defense, of the Admiral. of Team Enrico Credendino, Chief of Staff of the Navy, of the Army Corps Gen. Luciano Portolano, Secretary General of Defense and National Armaments Directorate and, for Fincantieri, of Gen. Claudio Graziano, President, and of Dario Deste, Director General of the Naval Ships Division. (breaking latest news)