Fincantieri scores a 1.18 billion coup in Indonesia and lays the foundations for expanding its business in South-East Asia, a central area today from a geopolitical point of view. The group led by CEO Pierroberto Folgiero has in fact signed a contract with the Asian country for the sale of two ships responsible for defending the coasts (defined in military jargon as “PPA”) for a value of 1.18 billion. The agreement «is a milestone for the development of the strategic partnership between our group and Indonesia», explains Folgiero, noting that he considers it «the first of other important collaboration opportunities» with Jakarta «in a logic of long-term partnership ». The reaction of the stock market was positive, where Fincantieri continued its rise and closed just below 70 cents (+0.9%).
It must be said that the agreement is part of the collaboration between the Asian country and our Ministry of Defense. The two ships were in fact destined for the Italian Navy and are under construction at the integrated shipyard in Riva Trigoso and Muggiano. These are units, we read in a note, which can carry out multiple tasks: from patrolling with rescue capacity at sea, to civil protection operations, as well as as a front-line combatant ship. The interest of the Indonesian Ministry of Defense arises from the Far East campaign of the Italian ship Francesco Morosini which also stopped in Indonesia last July. Fincantieri will act as prime contractor for Jakarta and coordinate other partners, including the Italian Leonardo, to adapt the ships’ combat system and the provision of related logistics services. The relevant agreements will be defined in compliance with the regulations for transactions between related parties. The contract can trigger further synergies in the operational, industrial and technological fields between Italy and Indonesia.
So far the good news. But there will also be work for lawyers because Fincantieri has been sued by Carnival Corporation.
The latter is seeking damages of $56.5 million related to the damage to the Carnival Panorama cruise ship that occurred in November.
