French shipbuilder CMN Naval and the UAE-based Edge Group have formally agreed to create a new Abu Dhabi-based shipbuilding joint venture named AD Naval (ADN).
Leveraging an existing order pipeline worth approximately EUR 7 billion ($8 billion), ADN will bring together both companies under an exclusivity agreement in the segment of high value small- to mid-size naval vessels including corvettes, offshore patrol vessels (OPVs), high-speed interceptors, trimarans, and landing craft.
Edge will hold a 51 per cent stake in the new company, and will collaborate with CMN on sales, commercial activities, and engineering. It will also establish a design bureau which will assume intellectual property rights for all future designs.
"The joint venture will grant Edge access to CMN Naval's global supply chain and its integrated logistics support (ILS) system and software, enhancing cost efficiency and operational performance through predictive and preventative maintenance, as well as the provision and management of all spare parts," said Edge.
The scope of the venture will also explore combat systems integration (CSI) of Edge's autonomous air and sea, and smart weapons solutions onto vessels built by the new company.
The announcement comes after an initial partnership agreement signed last month in Abu Dhabi, where both parties laid the foundations for collaboration across multiple domains.