Portugal to buy three frigates built by Italy's Fincantieri
Details of the Portugal-Italy Frigate Deal
Announcement and Significance
ROME, July 20 (Reuters) - Portugal has decided to buy three frigates built by Italian shipbuilder Fincantieri, Italy's Prime Minister Giorgia Meloni said on Monday, hailing the deal as a boost for Europe's defence industry.
About FREMM Frigates and Deal Value
FREMM frigates are multi-purpose warships jointly designed by Fincantieri and France's Naval Group. A source with knowledge of the matter estimated the deal with Portugal to be worth €3 billion ($3.4 billion).
Scope of the Agreement
Portugal's defence ministry said in a statement the €3 billion covers the acquisition of three frigates, their sustainment, technology transfer and other requirements necessary for the vessels' operational use throughout their "service life of no less than 30 years."
Delivery Timeline and Strategic Importance
It said the frigates, due for delivery between 2029 and 2030, are part of the Portuguese Navy's modernisation to address a changing geopolitical landscape and evolving threats, and support missions in territorial waters, international defence and collective security commitments, and local communities.
Statements from Leaders
Italian and Portuguese Prime Ministers
Meloni said she was "very pleased" with the transaction, which she announced while hosting a press conference with her Portuguese counterpart Luis Montenegro at the government headquarters in Rome.
Impact on European Defence Industry
"It is a recognition of the excellence of Italian industry, but it is also proof that Europe can strengthen its strategic autonomy by investing in the industrial and technological capabilities of its companies," Meloni added.
Market Reaction and Additional Information
Shares in Fincantieri extended gains after the announcement, rising more than 2%.
($1 = €0.8752)
(Reporting by Angelo Amante and Sergio Goncalves, editing by Gianluca Semeraro, Alvise Armellini and Chizu Nomiyama)
