“ORIZZONTE SISTEMI NAVALI SECURES €1.5 BILLION DEAL FOR TWO ADVANCED FREMM EVO FRIGATES FOR ITALY’S NAVAL FLEET”
As part of the extensive multi-year “FREMM” initiative focused on modernizing the Italian Navy’s fleet through the development of state-of-the-art frigates, Orizzonte Sistemi Navali (OSN), a collaboration primarily owned by Fincantieri (51%) and Leonardo (49%), has entered into an agreement valued at around 1.5 billion euro with OCCAR (Organisation Conjointe de Coopération en matière d’Armement) for the fabrication of two new FREMM frigates, designated as the “EVOLUTION” variant, recognized as “FREMM EVO”.
These two new vessels will showcase the forefront of naval military technology and operational capability, leveraging significant technological advancements made under recent defense initiatives, as well as the Mid Life Upgrade project for the Horizon-class destroyers.
The Italian Navy will gain two advanced FREMM frigates that guarantee exceptional operational effectiveness, featuring next-gen technology and pioneering systems, alongside the latest anti-drone functionalities and capacities for managing unmanned systems across three dimensions (above the water, on the sea, and beneath the surface).
The engineering expertise at Orizzonte Sistemi Navali in both Whole Warship and Combat System domains will empower the Italian Navy with two operationally leading-edge and technologically sophisticated vessels. These ships will aid in enhancing defensive capabilities and expanding operational flexibility.
All Anti-Submarine Warfare (ASW) capabilities and functionalities of the currently deployed FREMM ASW units will also be integrated into the new ships. The two new vessels are set to be constructed at Fincantieri’s Integrated shipyard in Riva Trigoso and Muggiano, with the first “FREMM EVO” scheduled for delivery in 2029, followed by the second unit in 2030.
Specifically, the primary upgrades and technological enhancements will focus on the Ship Management System Cyber-resilience, the air conditioning and electrical distribution systems, and the application of targeted solutions to reduce the ship’s environmental impact for the Platform System. The Combat System will feature upgrades with the latest Combat Management System SADOC 4 Cyber-resilient, radar systems (notably utilizing fixed-face X-C dual-band radars) designed to counter TBM threats, Electronic Warfare, Artillery and Missile Systems, the Sonar Suite, Communications System, and tactical data links, ensuring the utmost and most effective interoperability.
The “FREMM EVO” frigates will be equipped with highly reliable systems, supported by rigorous maintenance plans to guarantee readiness for operations, accompanied by high levels of operational availability.
Admiral Enrico Credendino, Chief of the Italian Navy, remarked: “The acquisition of the two next-generation FREMM (EVO) frigates forms a segment of the larger modernization and renewal strategy that the Italian Navy has initiated to enhance its capabilities enabling adaptable, swift, and effective responses to current and future landscapes in a world that has rapidly transformed in recent years. The evolution of FREMM capitalizes on a project that has consistently fulfilled the requirements of the Italian Navy and gained substantial international approval. Building on this solid foundation, we have incorporated cutting-edge technologies and modern systems into the FREMM, augmenting the ship’s defense capacities and broadening the mission spectrum for defending and securing our nation, thus safeguarding the national maritime cluster that we catalyze, sustaining open maritime communication lines, ensuring the security of literature, culture, and “Made in Italy”, as well as providing support to those in need.”
Giovanni Sorrentino, Chief Executive Officer of Orizzonte Sistemi Navali, stated: “The signing of this contract today to supply the Italian Navy with an additional two FREMM frigates in the “FREMM EVO” configuration is a testament to the close partnership between institutions, armed services, and the private sector. I extend my gratitude to all those who have dedicated their efforts and expertise to facilitate the conclusion of this contract, which signifies a major milestone for our entire national defense sector, for Fincantieri and Leonardo, the leading entities in Italian defense on both national and international fronts, as well as for every small and medium-sized enterprise that represents the backbone of our country’s manufacturing landscape.”
Pierroberto Folgiero, Chief Executive Officer and Managing Director of Fincantieri, noted: “Revitalizing Orizzonte Sistemi Navali represents our commitment to establishing a unique integration hub between Fincantieri’s naval prowess and Leonardo’s armament technologies. It embodies our nation’s capacity to oversee and develop premier military naval competencies in the service of the Italian Navy, reflecting the rich tradition and technological excellence of our industry. The new FREMM EVO will continue the evolution of the frigate that has set a global benchmark over the past two decades, as we integrate new tech solutions validated across all domains, from cybersecurity to underwater capabilities.“
“With the new FREMM EVO, the Italian Navy will be equipped with next-gen naval assets that are trustworthy, sustainable, and endowed with advanced operational capabilities. We are honored to participate in this highly significant endeavor: it exemplifies how collaboration between public and private sectors can forge meaningful economic and technological prospects,” commentedLorenzo Mariani, Co-General Manager of Leonardo. “We will persist in our efforts to advance these technological excellences with resolve and expertise, recognizing their strategic significance for our nation’s security and their beneficial effects on the Italian production landscape.”
In the upcoming weeks, Orizzonte Sistemi Navali will finalize subcontract agreements with Fincantieri and Leonardo, valued at approximately 690 million euro and around 415 million euro, respectively.
The agreement with Fincantieri constitutes a significant related-party transaction defined in accordance with relevant legislation, while for Leonardo, this subcontract represents a related-party transaction of lesser magnitude, given the contract value and applicable relevance metrics. Both transactions comply with current regulations and are exempt from the procedural guidelines for related-party transactions (including jointly), as per existing norms and the respective adopted procedures.
