Communications

Nice, 30.11.2007
 
CNS, Finmeccanica and Thales today announced their intention to merge their underwater weapon system activities. This cooperation will strengthen the European defence industry, creating a leading world player in this domain. 

To this end, at the Franco-Italian summit in Nice, the three partners have signed the Heads of Agreement (HoA), setting forth the creation of three joint-ventures:

• the "Torpedo Program JV", which will be in charge of the torpedo system engineering, design and development, marketing & sales and program management activities. It will be owned at 51% by Finmeccanica and 49% by DCNS. This JV will act as the overall Design Authority and Customer Interface for torpedoes (both heavy and light weight) and torpedo defence systems;
• the "Torpedo Manufacturing JV", which will be responsible for torpedo manufacturing and support activities, as well as energy module engineering, test and manufacturing. It will be owned at 51% by DCNS and 49% by Finmeccanica;
• the "Sonar JV" which will include the acoustic head design, development, manufacturing and support activities, as well as the sonar business dedicated to the Italian customer. It will be owned at 51% Thales and 49% by Finmeccanica.

These new organizations will create value for the benefit of all stakeholders, improving production efficiency, management integration, quality of products and services offered to final customers and increasing returns to shareholders. Furthermore, the project could bring
significant synergies by further exploiting the roles and activities of the respective national centers of excellence, while ensuring primary priorities of maintaining employment stability and growth prospects.The Joint Ventures' industrial sites would be maintained in the currentlocations.

DCNS - through its Underwater Weapon Business Unit -, Finmeccanica - through its WHITEHEAD ALENIA SISTEMI SUBACQUEI S.p.A. subsidiary -, and THALES (through its THALES Underwater Systems S.A.S. subsidiary) have been working together for several
years in the field of underwater weapons systems. Indeed, the three companies are successfully operating through the Eurotorp GEIE consortium for the lightweight torpedoes (MU90) development and marketing and through the Euroslat GEIE consortium in the field of
anti-torpedo systems.

This successful track record has contributed to the exploitation of the core competencies of the three partners, whose expertise is highly recognized by the respective national customers as well as on the international markets for both light and heavyweight torpedoes
as well as for anti torpedoes systems.

Based on these fundamentals, DCNS, Finmeccanica and Thales have decided to enter into this strategic alliance in order to create a global technological leader in the underwater weapon systems market.

The three CEOs - Pier Francesco Guarguaglini for Finmeccanica, Jean-Marie Poimboeuf for DCNS and Denis Ranque for Thales - have stated that this agreement represents a new milestone in the consolidation of the European naval defence industry.

In due time, they would consider opening the alliance to other European players.

The closing of the project is expected to occur by 2008 following due diligence and regulatory approvals.