Italy’s Fincantieri take dive after missing out on Future Frigate selection
A SHIP contract promising jobs and exports for South Australia has been unceremoniously dumped after Italian shipbuilders Fincantieri failed to win the $35 billion Future Frigate bid.
A SHIP contract promising jobs and exports for South Australia has been unceremoniously dumped, after Italian shipbuilders Fincantieri failed to win the $35 billion Future Frigate bid.
Fincantieri was in a three-way bid with Spain’s Navantia and Britain’s BAE, which ultimately won the tender.
In the lead up to the much-awaited decision, many promises were made by all involved. However, the promises were made on the condition that the tender was won – with the exception of Fincantieri.
It awarded contracts to build cruise ship blocks to two local South Australian companies – MG Engineering in Adelaide and Ottoway Engineering in Whyalla, only to pull out unexpectedly when it didn’t get the job to build the big warships.
The cruise ship blocks, made of Australian steel, are understood to be well under way. Initially, Fincantieri said they would be finished mid-year.
“The blocks will be built by mid-2018 and with Australian steel.” Fincantieri said in April.
In a statement on Thursday night, the company said: “As indicated at the time of the announcement, the cruise block project formed part of the Industry Plan and it was designed to assist Fincantieri’s start-up operations, helping it to gain familiarity with local partners.
“As Fincantieri was not selected by the Australian Government the project will not proceed, however Fincantieri remains committed to fulfilling its remaining contractual obligations in Australia.”
Fincantieri was widely believed to be running a close second to BAE, but BAE’s more modern design and promise of local industry involvement clinched the deal.
The enormous 22 and 23-tonne blocks being built here would allow Fincantieri “to establish and strengthen its relationships with local suppliers and understand their capabilities”, the company said in a statement when it announced the contracts.
“It forms part of the company’s detailed Industry Plan which will maximise local industry participation and which aims at helping Australia become autonomous in the design, construction and export of vessels, including the material within.”
Defence Teaming Centre chief Margot Forster said the industry was “naturally disappointed that Fincantieri has decided to leave the market so quickly” and that Australian companies needed to be “front and centre of these important projects”.
“We trust that the parties involved will come to an appropriate commercial settlement in relation to this decision,” she said.
Centre Alliance Senator Rex Patrick said Fincantieri was “walking away from what turned out to be something of a half promise”.
“Noting Fincantieri committed to building the cruise ship block, irrespective of the outcome of the Frigate Frigate tender, this is a betrayal of South Australian industry,” Senator Patrick said.