Leonardo, because the former Finmeccanica also enjoys the Fincantieri order in Indonesia
The Fincantieri contract in Indonesia could be worth 1.2 billion euros for Leonardo. What's new – not only in Indonesia – for the former Finmeccanica group
Intense day for Fincantieri with positive effects also for Leonardo.
Yesterday the shipbuilding giant of Trieste and the Ministry of Defense of Indonesia signed a contract for the supply of 6 Fremm class frigates, the modernization and sale of 2 Maestrale class frigates, and the related logistical support.
Leonardo will supply the combat system to the frigates commissioned by Indonesia to Fincantieri.
“Intesa Sanpaolo and Banca Akros calculate that the group led by CEO Alessandro Profumo could reach a share of 40% of the total estimated at around 3 billion. The value represents between 7% and 9% of the company's target order collection for 2021 ”reported Milano Finanza .
Also yesterday Leonardo delivered the first TH-73A training helicopter to the US Navy during an official ceremony at its Philadelphia plant in the USA. In January 2020, Leonardo was awarded an initial contract for 32 helicopters (177 million dollars) with the United States Department of Defense, which then exercised the option for an additional 36 units (171 million dollars) last November.
Finally, in the evening, the Piazza Monte Grappa company also spoke on the prospects of the Automation Business Unit in Genoa (formerly Elsag). The employees of the former Finmeccanica have been demonstrating for some time against the hypothesis of the sale of the civil unit putting at risk the employment of 400 employees plus the workers of the cleaning and canteen contracts at the Sestri Ponente site. But Leonardo confirmed the search for a business partner.
All the details.
THE RELAPSE FOR LEONARDO FROM THE FINCANTIERI CONTRACT IN INDONESIA
Although Fincantieri has not provided financial details, the value of the maxi-contract is estimated at 3 billion.
The construction of the frigates will ensure employment benefits for several Italian plants of the group in the coming years, but also for other companies in the sector, the Trieste-based company explained in a note. In particular Leonardo who will supply the combat system, and numerous small and medium-sized national companies.
THE FOCUS OF INTESA SANPAOLO
"The value of the contract has not been disclosed, but assuming that usually the combat systems usually represent 35/40% of the total value of the frigates, we estimate for Leonardo that the contract is worth between 1 and 1, 2 billion euros, or between 7 and 9% of the total order intake expected in 2021 ”, calculates Intesa Sanpaolo.
THE JUDGMENT OF BANCA AKROS
“Banca Akros also reports that Fincantieri has not communicated the value of this order and at the same time provides more details than the indications of Intesa Sanpaolo” underlines MF .
“Considering that each Freem frigate has a list price of at least 500-600 million euros, we estimate that the contract is worth between 3 and 3.6 billion euros. Assuming that Fincantieri holds 60% of this stake, therefore 1.8 billion, in addition to the entire amount for the support part for an amount between 450 million and 1.35 billion, while Leonardo should have 40%, therefore about 1 , 2 billion ".
"For the investment bank, the financing of the contract will take some time and the signature should take place by the end of this year." "In this case, Leonardo could register contracts with Fincantieri by next December or early 2022. An amount of 12 billion accounts for approximately 8.6% of Leonardo's 2021 order collection target, or 14 billion", underlines Banca Akros .
AND THAT OF EQUITA
Equita Sim is more prudent, according to which “in the absence of details, we estimate that the fallout in terms of orders for Leonardo may exceed 500 million, over 3/4% of the guidance on order intake for 2021”.
THE DELIVERY OF THE FIRST TH-37A HELICOPTER TO THE US NAVY
As we said at the beginning, Leonardo also collected another success yesterday.
The former Finmeccanica delivered the first TH-73A training helicopter to the US Navy. In January 2020, Leonardo was awarded an initial contract for 32 helicopters (177 million dollars) with the United States Department of Defense, which then exercised the option for an additional 36 units (171 million dollars) last November.
LEONARDO PARTNER FOR THE UNITED STATES
“Today's event represents an exceptional milestone for us, for our growing efforts and constant commitment to become a partner, not just a supplier, and a strategic resource for the United States in various sectors. We are proud to be able to make an important contribution to the future of US defense, ”said CEO Profumo.
“The US Navy requires the highest quality of training for its future pilots. We are honored to start deliveries of the helicopters chosen for this fundamental task ”added Gian Piero Cutillo, Managing Director of Leonardo's Helicopter Division.
OUTLOOK FOR THE AUTOMATION BUSINESS UNIT (FORMER ELSAG)
Finally, yesterday evening the former Finmeccanica also spoke on the prospects of the Automation Business Unit in Genoa.
In ten years, the staff of the Sestri Ponente plant (formerly Elsag) has gone from 2,500 to 1,700 employees. Now, the future of another 400 workers and the centrality of the Genoese headquarters within the group are at risk. For some time, Leonardo has in fact been looking for a partner to enhance the sector.
“To ensure a solid future for Leonardo's automation center in Genoa by intervening as soon as possible on organization, governance, processes and dimensions, also to protect employment levels”. This is the position of the group led by Alessandro Profumo.
"Among the various options Leonardo is working on is the search for a partner with an industrial perspective – also able to detect Automation over time – who can guarantee the Business Unit to be competitive in the long term, with an adequate size and a dedicated investment capacity. The first step – which Leonardo is already taking – is to make timely targeted interventions on Automation to guarantee the Business Unit a flexible and agile cost and governance structure, in line with its reference market, characterized by dynamics different from those typical of the Aerospace, Defense and Security market. These are choices that cannot be postponed if we want to ensure a solid future for this reality ”commented Simonetta Iarlori, Leonardo's Chief People Organization and Transformation Officer.
THE REACTIONS
“Perhaps we have not understood each other: the automation workers for us must remain in Leonardo. The Genoese workers do not need to be made fun of ”. The workers of the Leonardo di Sestri Ponente plant therefore reject the company note to the sender. The latter confirmed its willingness to find an industrial partner for the automation business unit, also with a view to future outsourcing, which could involve up to 400 workers at the Genoese plant which occupies a total of 1,700.
THE REQUESTS OF TRADE UNIONS
Immediate response from Fim, Fiom and Uilm: "The state of agitation continues, if any partner looks out the window, know that we will not make discounts".
The unions' request is now well known: “Now we need the government meeting, in Genoa or Rome. It will be an opportunity to understand what the government thinks of this operation and to verify if it intends, with facts, to block it ”. On the other hand, it was the Minister of Economic Development himself, Giancarlo Giorgetti, who emphasized in Parliament the need for a local table to manage the dispute. And they remember that, "as communicated by the company to the prefect", the search for a partner "has already seen a negative response from twenty competitors, covering themselves with ridicule, demonstrating the absence of strategy and highlighting the meaning of the operation, aimed exclusively to make cash ".
GIORGETTI: "OPENING A TABLE ON THE LEONARDO AUTOMATION POLO"
The evaluation process of the future of the Leonardo automation center in Sestri Ponente in Genoa "aimed at finding the best possible solution" requires "a special table" which "must first take place locally". Giorgetti said this just yesterday, during Question time in the Senate. "We consider this government to be an important player in the country and therefore also linked to strategic sectors of our advanced technology industries", said the owner of the MISE.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/leonardo-perche-anche-lex-finmeccanica-gode-per-la-commessa-di-fincantieri-in-indonesia/ on Fri, 11 Jun 2021 14:15:33 +0000.