Fincantieri and Leonardo have jointly established the guiding principles of an agreement to bolster their collaboration in the military naval sector and refurbish their Italian company Orizzonte Sistemi Navali.

Orizzonte Sistemi Navali is a joint venture (JV) established by Fincantieri owning 51% and Leonardo having a 49% stake.

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The collaboration between the companies will enable them to increase their locally developed complementary expertise with an aim to expand their market presence abroad.

With the revamp, the JV company will be responsible for the development of combat systems, as well as the definition of subsystem requirements and individual components’ architecture, including the combat management system (CMS).

Leonardo chief executive officer Alessandro Profumo said: “With this agreement, Italy will present itself in an even more cohesive and effective way, in a highly challenging market, enhancing all the high-tech skills that the two companies have developed together.

“Revamping Orizzonte Sistemi Navali is the best way to encourage the development of the entire national supply chain, which contributes to the creation of military ships.”

“Revamping Orizzonte Sistemi Navali is the best way to encourage the development of the entire national supply chain, which contributes to the creation of military ships. Through jointly offering products and services, we will increase the competitiveness of the Italian industry in the international market.”

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The current agreement is part of the collaboration and the preferred partnership launched between Fincantieri and Leonardo in October 2014.

As part of the recent partnership, the two companies will provide the required resources to make Orizzonte Sistemi Navali the design authority for naval combat systems.

Fincantieri will continue to operate as the prime contractor, the single interface to customers and will be in charge of the architecture of the ship system concerning both the navy vessel and combat system on behalf of the JV.

Leonardo will serve as the preferred partner for the CMS weapon system and the equipment, in addition to the vessel’s systems.