Italy prepares plan to bridge automotive and defence sectors, minister says

ROME (Reuters) - Italy is preparing an industrial plan aimed at fostering connections between its automotive, defence and aerospace sectors, to be unveiled in June, Industry Minister Adolfo Urso said on Sunday.

The plan comes amid European discussions on boosting defence spending and potential joint military funding.

"In June, when the path of reforms we have defined in Europe is clear, we will present the first industrial strategy document in 30 years to guide the country towards new development opportunities," Urso told the Italian newspaper Il Messaggero.

He said collaboration between the sectors would offer opportunities for growth in components and machining, with auto production in the country set to decline.

The region's defence firms were confident they could ramp up production but warned delivery times could stretch into years, and would depend on government support with spending and new contracts.

Rheinmetall, Europe's top ammunition maker, said last month it intends to repurpose two automotive plants in Germany to mostly make defence equipment. It launched a joint venture with Italy's Leonardo on military combat vehicles, which Urso said was in line with Italy's policy of "creating European champions with a production base in Italy."

Italy's right-wing government is aiming to guarantee encrypted communications between the government, diplomats and defence officials in risky areas and Musk's Starlink is among the contenders to provide the system.

Rome is also in talks with Franco-British satellite group Eutelsat's OneWeb and Urso has cited efforts to develop a domestic satellite service.

The minister said the national space agency was near conclusion of its feasibility study for building "low-orbit satellites that will also ensure national security."

(Reporting by Giselda Vagnoni; Editing by Bernadette Baum)