“ORIZZONTE NAVAL SYSTEMS ACHIEVES €1.5 BILLION CONTRACT FOR TWO STATE-OF-THE-ART FREMM EVO FRIGATES FOR ITALY”
In alignment with the extensive multi-year “FREMM” program aimed at enhancing the Italian Navy’s fleet through the creation of cutting-edge frigates, Orizzonte Sistemi Navali (OSN), a partnership predominantly owned by Fincantieri (51%) and Leonardo (49%), has entered into a contract estimated at approximately 1.5 billion euros with OCCAR (Organisation Conjointe de Coopération en matière d’Armement) for the construction of two novel FREMM frigates, classified as the “EVOLUTION” variant, referred to as “FREMM EVO”.
These two vessels are set to exhibit the pinnacle of naval military innovation and operational prowess, capitalizing on significant technological strides achieved under recent defense programs, alongside the Mid Life Upgrade project for the Horizon-class destroyers.
The Italian Navy will acquire two high-tech FREMM frigates that promise remarkable operational efficiency, featuring next-gen technologies and innovative systems, as well as the latest anti-drone capabilities and the ability to manage unmanned systems across three domains (above water, on the sea, and below the surface).
The engineering proficiency at Orizzonte Sistemi Navali in both Whole Warship and Combat System areas will equip the Italian Navy with two technologically sophisticated and operationally advanced vessels. These ships will significantly boost defensive capabilities and broaden operational versatility.
All Anti-Submarine Warfare (ASW) capabilities and functionalities present in the currently operational FREMM ASW units will also be incorporated into the new vessels. The two cutting-edge ships are slated for construction at Fincantieri’s Integrated shipyard in Riva Trigoso and Muggiano, with the first “FREMM EVO” anticipated for delivery in 2029 and the second unit following in 2030.
Particularly, the key advancements and technological upgrades will focus on the Ship Management System’s Cyber-resilience, the air conditioning and electrical distribution frameworks, alongside targeted solutions aimed at minimizing the ship’s environmental footprint for the Platform System. The Combat System will include enhancements with the latest Combat Management System SADOC 4 Cyber-resilient, radar technologies (notably employing fixed-face X-C dual-band radars) designed to counter TBM threats, Electronic Warfare, Artillery and Missile Systems, the Sonar Suite, Communications infrastructure, and tactical data links, ensuring the highest level of effectiveness and interoperability.
The “FREMM EVO” frigates will be armed with highly dependable systems, backed by rigorous maintenance strategies to ensure operational readiness, accompanied by high levels of availability.
Admiral Enrico Credendino, Chief of the Italian Navy, stated: “The procurement of the two next-generation FREMM (EVO) frigates represents a segment of the broader modernization and renewal strategy that the Italian Navy has embarked upon to enhance its capabilities, enabling adaptive, rapid, and effective responses to contemporary and future challenges in a rapidly evolving world. The evolution of FREMM builds upon a program that has consistently met the requirements of the Italian Navy and received significant international acclaim. Based on this robust framework, we have integrated state-of-the-art technologies and contemporary systems into the FREMM, enhancing the ship’s defensive capabilities and expanding the mission spectrum for safeguarding and securing our nation, thus preserving the national maritime sector that we foster, maintaining open maritime communication lines, ensuring the protection of cultural heritage, and supporting those in need, both within our borders and beyond.”
Giovanni Sorrentino, Chief Executive Officer of Orizzonte Sistemi Navali, remarked: “The signing of this agreement today to supply the Italian Navy with two additional FREMM frigates in the “FREMM EVO” configuration underscores the strong partnership among government institutions, armed forces, and the private sector. I express my appreciation to all those who have contributed their efforts and expertise to facilitate the successful conclusion of this agreement, which marks a significant milestone for our entire national defense ecosystem, for Fincantieri and Leonardo, the leading forces in Italian defense on both national and global stages, as well as for every small and medium-sized enterprise that constitutes the backbone of our nation’s manufacturing landscape.”
Pierroberto Folgiero, Chief Executive Officer and Managing Director of Fincantieri, commented: “Revitalizing Orizzonte Sistemi Navali highlights our dedication to creating a unique collaborative hub combining Fincantieri’s naval expertise and Leonardo’s armament technologies. It reflects our nation’s capability to develop and oversee leading military naval competencies in service of the Italian Navy, showcasing the rich tradition and technological excellence within our industry. The new FREMM EVO will continue the evolution of the frigate that has set a world standard over the last two decades, as we implement new technology solutions validated across various domains, from cybersecurity to underwater capabilities.“
“With the introduction of the new FREMM EVO, the Italian Navy will be equipped with next-gen naval assets that are reliable, sustainable, and endowed with advanced operational capabilities. We are honored to take part in this highly significant mission: it exemplifies how collaboration between public and private sectors can forge meaningful economic and technological pathways,” addedLorenzo Mariani, Co-General Manager of Leonardo. “We will persist in our efforts to advocate for these technological advancements with determination and expertise, understanding their strategic importance for our national security and their positive impact on the Italian production environment.”
In the upcoming weeks, Orizzonte Sistemi Navali will finalize subcontract agreements with Fincantieri and Leonardo, approximating around 690 million euros and 415 million euros, respectively.
The agreement with Fincantieri represents a significant related-party transaction in accordance with applicable legislation, while for Leonardo, this subcontract denotes a related-party transaction of lesser magnitude, considering the contract value and relevant metrics. Both transactions align with current regulations and are exempt from procedural guidelines for related-party transactions (including joint agreements), as per existing norms and adopted procedures.
