Fincantieri-Leonardo JV signs €764m support contract for Italian FREMM frigates

Orizzonte Sistemi Navali (OSN), a joint venture between Fincantieri and Leonardo, has signed an in-service support contract with the Organisation for Joint Armament Cooperation (OCCAR). The contract covers all systems and equipment on the Italian Navy’s FREMM-class frigates.

The agreement, designated through life sustainment management 2 (TLSM2), is valued at approximately €764 million ($888 million), with about €335 million of that amount being optional.

As part of the deal, sub-contracts will be finalised with Fincantieri for approximately €265 million and Leonardo for approximately €190 million. Other industrial partners include MBDA, Elettronica, and TMDS.

The contract has a duration of five and a half years and aims to enhance the FREMM fleet’s operational readiness, OSN said. It will involve integrating industry personnel into navy processes and facilities, with a focus on improving materials management and preventive maintenance planning using the navy's digital platforms.

Fincantieri's CEO, Pierroberto Folgiero, commented that after-sales support has become as "strategically important" as shipbuilding for ensuring the long-term effectiveness of naval assets.