Profile

The "Società Finanziaria Meccanica Finmeccanica" was set up by the "Istituto per la Ricostruzione Industriale" (IRI) to manage State participation in the mechanical and ship-building industries which would be acquired by IRI during its first fifteen years of activity.

Finmeccanica was given a clearly defined task and substantial resources to restructure important companies which would become the core of the mechanical industry for the next fifty years: Ansaldo, Alfa Romeo, San Giorgio, Sant'Eustachio, Navalmeccanica, Cantieri Navali dell'Adriatico.

Attention focused on sectors such as automobiles, ship building, railways and industrial machinery, with an eye on the emerging electronics sector.

The quest for a more competitive dimension and the general trend towards better structuring of the whole state participation system, led to a series of company transfers, mainly with EFIM, but also with other financial branches of IRI. Against this background, Finmeccanica sold off the railway companies and the electronics firms (transferred to STET), and acquired several companies in the electro-mechanical sector.

In the early 1970s, Finmeccanica changed its organizational structure. The Group acquired a sizable dimension with participation in several industrial sectors: automobiles (with Alfa Romeo, acquired in 1948), the thermo-electro-mechanical sector (with Ansaldo, a long-standing company founded in 1854) and the aerospace sector (with Aeritalia, set up 50/50 with FIAT in 1969).

The energy crisis forced Finmeccanica to review the policy it had been pursuing up until that time.

The new objectives were restructuring, internationalization, and achieving a competitive dimension.

Although these objectives were similar to those of the early 1950s, they now referred to a very different industrial scenario.

During the early 1980s, Finmeccanica began to focus on the electro-mechanical and aerospace sectors, gradually consolidating its activities. 1987 marked the end of this restructuring phase which was essential to enable the Group to develop internationally. In 1989, IRI decided that Finmeccanica should re-acquire Selenia, Elsag and SGS, three companies specialized mainly in the electronics field, previously transferred to STET.

At this point, Finmeccanica's range of activities included civil systems, automated factories, command and control systems, missile systems, biomedical apparatus, robotics, microelectronic components, alongside the traditional sectors of energy, transport, industrial plant, and aerospace.

In 1990, Aeritalia and Selenia were merged to form Alenia, bringing together the activities of the two companies in the fields of aeronautics, defence electronics, missile systems and air traffic control.

At the same time, Elsag acquired Bailey thereby expanding its significant presence in the field of automated processes and services. In 1991, Ansaldo Energia was set up with the merger of Ansaldo GIE and Ansaldo Componenti, followed by the acquisition of Fabbrica Turbine and Caldaie Legnano.

Setting up Elsag Bailey Process Automation, together with subsequent acquisitions, enabled Finmeccanica to become the second largest group in the world for this sector. The acquisition of Breda Costruzioni Ferroviarie led to the creation of an integrated railway group able to compete with leading European operators.

Finmeccanica began operating in the microelectronics sector in 1999 through a merger with MEI, an Italian company (equally shared with French State participation) which owned 22% of ST Microelectronics, a leading semiconductor firm.

1992 was a milestone in Finmeccanica's history since the Group's shares were listed on the stock exchange, under its new name Finmeccanica S.p.A. (Società per Azioni), through a merger with its subsidiary SIFA.

In 2000, Italian State participation in Finmeccanica was reduced and all the IRI shares were put on the market with a value of more than 5 billion euros. Today, the Italian Ministry of Finance holds about one third of the capital and the rest is on the market.

The old Group structure of divisions was replaced by homogeneous operating companies in line with a strategy of international development, leaving Finmeccanica with the task of strategic and industrial control.

Alenia Spazio and Agusta were set up in 2000, Galileo Avionica and Oto Melara in 2001, Alenia Aeronautica in 2002.

In 2001, the transport sector expanded with the creation of AnsaldoBreda and Ansaldo Trasporti Sistemi Ferroviari. In 2002, acquisitions included Marconi Mobile (now SELEX Communications), OTE and Telespazio, companies that are leaders in defence communications, radio systems for professional users, and satellite systems and services.

In the aerospace and defence sectors, Finmeccanica strengthened its role as the main Italian manufacturer and one of the leaders in Europe by acquiring Aermacchi and a 30% share in Fiat Avio (now the Avio Group, the rest of which is controlled by The Carlyle Group).

Italy and the USA signed a Memorandum of Understanding relating to Italian participation in the industrial program for the new generation Joint Strike Fighter.

Finmeccanica took part in designing, developing and manufacturing components for the new plane through its companies Alenia Aeronautica, Galileo Avionica, SELEX Communications and Elsag.

At the start of 2003, Alenia Aeronautica won a tender for 12 tactical transport aircraft, the new generation C-27J, for the Greek Air Force, to be produced jointly with the US company Lockheed Martin.

Again in the aeronautical sector, Boeing and Finmeccanica set up an agreement for collaboration on the 7E7 Dreamliner, the most advanced civil aviation program in the world.

In the radio-communications sector, SELEX Communications acquired MMA (Marconi Mobile Access), a centre of excellence for radio-mobile technologies and applications.

Finmeccanica signed the definitive contract with GKN to acquire GKN's 50% share in the joint venture AgustaWestland N.V. helicopters. With this move, Finmeccanica acquired control of the world's leading helicopter company.

The Italian Space Agency and Alenia Spazio signed a contract to produce the COSMOSkyMed satellite system, a constellation of four dual-use satellites (civil and defence) designed for Earth observation.

Alenia Spazio was appointed project leader for the industrial team to produce the satellite system, with Telespazio as one of the main suppliers.

Today

The recent agreements with Alcatel and BAE Systems strengthen the Group's manufacturing and service activities for space systems and defence electronics.

The UK Defence Ministry chooses AgustaWestland for the programmes Future Lynx - to produce a fleet of helicopters for land and naval use, and the Sea King Integrated Operational Support (SKIOS) - providing maintenance and servicing support for the fleet of Sea King helicopters.


After the Greek government, the Bulgarian government also chooses the C-27J to replace its current fleet of planes for transporting troops and materials.

The British Royal Air Force chooses the AgustaWestland A109 Power, already used by the US Coast Guard Service.

The Eurely consortium (with Finmeccanica as a member) and the iNavSat consortium are selected for the final phase of contract negotiations for the Galileo satellite system concession. Subsequently, the Galileo Joint Undertaking authorizes the merger of the two consortia and starts up the negotiation phase which should be completed by the end of the year.

After signing the definitive agreement with BAE Systems, Finmeccanica set up the defence electronics division, the second largest operator in Europe and the sixth in the world for this sector, with a turnover of more than 3 billion euros and a workforce of around 19,000 employees.

The defence electronics division is made up of Selex Sistemi Integrati (ex-AMS), world leader in defence systems and sensors for land, sea and air defence applications, as well as control systems for air traffic handling and planning; Selex Sensors and Airborne Systems, specialized in the avionic field, owned 75% by Finmeccanica and 25% by BAE Systems, and Selex Communications, with acquisition by Finmeccanica of the military and protected communications sector from BAE Systems, now integrated into Selenia Communications.

The defence electronics division also includes the subsidiary Elsag, with its specialized know-how and capability in the fields of information technology and security systems.

In July, two joint ventures were set up by Finmeccanica and Alcatel to handle their respective space activities: Alcatel Alenia Space and Telespazio.

Alcatel Alenia Space (Alcatel 67%, Finmeccanica 33%) brings together the industrial activities of Alcatel Space and Alenia Spazio. Telespazio, which is controlled 67% by Finmeccanica and 33% by Alcatel brings together the activities of Telespazio and Alcatel Space Services and Operations.

This operation, together with taking over AgustaWestland and setting up the Space Alliance, is one of the main factors enabling Finmeccanica to achieve its objectives of increasing the Group's size, becoming more international, and boosting areas of excellence. It also contributes significantly towards helping the Group to focus on its core business of aerospace and defence.