(Alliance News) - Fincantieri Spa and the Indonesian Ministry of Defense announced Thursday that they have signed a contract, as part of the collaborative relationship initiated by the Italian Ministry of Defense, for the supply of two PPA units, worth EUR1.18 billion.

The PPA is highly flexible and has an excellent level of technology, with capabilities to perform multiple tasks ranging from patrolling with sea rescue capabilities, to Civil Defense operations as well as from a first-line combatant ship.

The ships covered by the order, originally intended for the Italian Navy, are currently under construction and outfitting at the Integrated Shipyard in Riva Trigoso and Muggiano.

The Indonesian Defense Ministry's interest in PPA units stems from the Far East Naval Campaign of the Francesco Morosini, the second ship of the Italian Navy's PPA class, which also stopped in Indonesia in July 2023. The operation can trigger further operational, industrial and technological synergies between the two countries. The units will be able to support Indonesia in protecting national interests and contribute to the stability of the sensitive Indo-Pacific strategic quadrant.

As part of the operation, Fincantieri will act as prime contractor vis-à-vis the Indonesian Ministry of Defense and will specifically coordinate with other industrial partners, including Leonardo, for the ships' combat system upgrades and the provision of related logistics services. The relevant agreements will be defined in compliance with applicable regulations, including those on related party transactions.

The effectiveness of the contract is subject to due approvals from the relevant institutions.

Pierroberto Folgiero, chief executive officer and general manager of Fincantieri Group, said, "This contract is a milestone in the development of the strategic partnership between our group and Indonesia. We see it as the first of other important collaboration opportunities with the Indonesian Ministry of Defense, in a logic of long-term partnership thanks to the structural support of our institutions, starting with the Ministry of Defense and the Italian Navy. Southeast Asia is a central area from a geopolitical point of view where Fincantieri wants to strengthen its presence, as defined in the industrial plan."

Fincantieri's stock is up 1.3 percent at EUR0.68 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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