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Not only Leonardo, here is the business of the Italian defense industry in Austria

Not only Leonardo, here is the business of the Italian defense industry in Austria

G2G and more. Here is what the Secretary General of Defence, General Portolano, said in a hearing in the Chamber

Towards a direct dialogue between Italian and Austrian defense companies, starting from the G2g agreement.

This is what General Luciano Portolano, Secretary General of Defense and National Director of Armaments (DNA) illustrated during the hearing at the Defense Commission of the Chamber on 9 March.

"Always with the intention of promoting national excellence in the international arena – stated General Portolano – I intend to support and increase export opportunities". And in this context, "one of the most promising regulatory instruments for offering business opportunities to the national defense industry are government-to-government (G2G) agreements", explained the DNA.

Starting from the one with Austria signed in December 2021 by the then Defense Minister Lorenzo Guerini and his Austrian counterpart Klaudia Tanner in Rome, aimed at strengthening the bilateral collaboration between the two countries and defining a strategic partnership in the helicopter field . And "this formula is so valid" argued General Portolano that Vienna is evaluating "the possibility of using this mechanism also for the supply of other platforms and services for logistic support".

But in addition to the G2G agreement, Segredifesa hosted last year the bilateral meeting "Aerospace and Defense Industries", aimed at consolidating the collaboration between the Italian and Austrian defense industries, organized by the Federation of Italian Aerospace, Defense and Security Companies ( Aiad).

All the details.

THE EXPORT IS FUNDAMENTAL FOR THE DEFENSE INDUSTRIAL SECTOR

Regarding the importance of exports for the Italian defense industry, General Portolano recalled that "three quarters of the turnover of our industrial sector is linked precisely to exports". Therefore "The interest of the State, and in particular of the Defense, is clear in ensuring that national companies are successful in the international market, so as to consolidate their production capacities and continue to invest adequately in research, developing state-of-the-art systems art that meet the operational needs of our Armed Forces”.

THE IMPORTANCE OF G2G AGREEMENTS

Hence, in this context, "one of the most promising regulatory instruments for offering business opportunities to the national defense industry are government-to-government agreements" explained the National Armaments Director.

“These agreements – continued General Portolano – are instruments of industrial policy, which allow the supply of goods and services from State to State, but they also have a political value which aims to strengthen relations between contracting States and a strategic function, in what they allow to launch cooperation programs on common platforms and consolidate partnerships that generate interoperability in the engineering, operational, training, logistics and maintenance fields".

Furthermore, "these agreements allow the industry to focus on long-term programmes, making it possible to invest more in the phases following production, thanks to the certainty of the request for updating, modernization and logistical support of the equipment sold, keeping the industrial chain active also in the after sales,” added the general.

THOSE SIGNED WITH AUSTRIA FOR 36 LEONARDO HELICOPTERS

And in this regard, Portolano recalled that "only in the last period have G2G agreements materialized with Austria, for 36 multi-purpose helicopters, with Slovenia, for a C-27J transport aircraft, and this formula is so valid that Austria and Slovenia are evaluating the possibility of using this mechanism also for the provision of other platforms and services for logistic support”.

On 19 December, the Italian defense and aerospace group delivered the first of the 18 helicopters of the AW169M LUH program of the Austrian Ministry of Defense to Austria, as part of the Italy-Austria G2G agreement announced by the two countries at the end of 2021 . The agreement is aimed at strengthening bilateral cooperation between the two countries and at defining a strategic partnership in the helicopter field.

Not only that, on the same occasion the two countries also announced an amendment to the G2G Agreement, through which Austria exercises options for an additional 18 helicopters. So 36 aircraft in total. “Further proof of his confidence in the selected platform” commented the former Finmeccanica company.

G2G AGREEMENTS ALSO POSSIBLE WITH ROMANIA, BULGARIA, MONTENEGRO AND BRAZIL

But it doesn't end there. Because according to DNA “agreements of this type could be launched in the near future with other countries including Romania, Bulgaria, Montenegro and Brazil. It should also be noted that many times the political cohesion generated by the G to G can produce positive effects in other sectors, stimulating initiatives that fall – for example – in business to government or business to business cooperation”.

ITALY-AUSTRIA MEETING AT THE SEGREDIFESA HEADQUARTERS ORGANIZED BY AIAD

Furthermore, "these considerations were the basis of the activity, which took place in Rome on 25 October, to start a direct dialogue between the Italian and Austrian defense companies and explore opportunities for industrial cooperation".

In fact, in the presence of the DNA Portolano, and of the Austrian counterpart, Major General Harald Vodosek, last October's event "made it possible to develop new and different forms of intergovernmental interaction, promote new partnerships and support cooperation", reported the note from Segredefence.

In particular, "Italy has confirmed its willingness to expand the bilateral Government-to-Government (G2G) agreement already stipulated with Vienna by further units for the supply to the Austrian Armed Forces of 18 Augusta LUH AW-169 helicopters, built by Leonardo. The activity, organized by the Federation of Italian Aerospace, Defense and Security Companies (Aiad), follows the bilateral meeting held last May and aimed at strengthening the excellent relations between the two countries, confirming the willingness of both to expand cooperation in the aeronautical, radar, UAV and space sectors” added Segredifesa.

SIMILAR INITIATIVES WITH SOUTH KOREA AND MONTENEGRO

Finally, the National Armaments Director argued that "similar initiatives have also been discussed with South Korea and Montenegro and will be promoted on all possible occasions".

However, "all these commitments involve an increase in the efforts associated with them and the need to review the organizational structure of the General Secretariat, designed before all these initiatives were launched", highlighted General Portolano. "I believe that the solution to be sought – concluded Portolano – is in the construction of structures with variable geometry, aimed at supporting the specific need with human resources drawn from the technical-administrative area and, where necessary, with the contribution of the Armed Forces".


This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/non-solo-leonardo-ecco-gli-affari-dellindustria-italiana-della-difesa-in-austria/ on Mon, 17 Apr 2023 04:40:44 +0000.