Europe's largest shipbuilder, Italy's Fincantieri SpA, said Monday it plans to spend $120 million to buy Manitowoc Marine Group (MMG) shipyard, and will invest further in the yard in hopes of eventually winning a U.S. Navy contract worth at least $18 billion.
"We will invest a further $100 million in MMG in the coming years, in new technology and equipment, to deal with what we hope will be an increasing order flow," said Fincantieri Chief Executive Giuseppe Bono in a telephone interview.
Fincantieri has been working with a Lockheed Martin Corp.-led group to build the US Navy's first Littoral Combat Ship, or LCS, at the MMG yard. Lockheed Martin has agreed to become a minority investor in MMG, Fincantieri and MMG's parent said. Lockheed was not immediately available for a comment.
The Lockheed Martin-led group's LCS prototype, called the USS Freedom, started trials in Lake Michigan late last month. The prototype was developed from a Fincantieri hull design that has been used for super-fast ferries. It is being adapted for military use.
Fincantier has also supplied the diesel motors for the Freedom, as well as other components.
The Lockheed Martin-led group is competing with a General Dynamics (GD) for the contract, since the latter is also building its own version of the LCS.
The Navy will use to perform antisubmarine, mine and surface warfare missions close to shore, and plans to order 55 ships in all. The two groups are now bidding for work on the next three ships.
Each is slated to cost around $300 million, not including military equipment, but a Navy official said last week that the first two prototypes could be around $550 million each, according to press reports.
Fincantieri is owned by the Italian government, and does not receive state subsidies. The government plans to sell its stake to private investors.
"We will invest a further $100 million in MMG in the coming years, in new technology and equipment, to deal with what we hope will be an increasing order flow," said Fincantieri Chief Executive Giuseppe Bono in a telephone interview.
Fincantieri has been working with a Lockheed Martin Corp.-led group to build the US Navy's first Littoral Combat Ship, or LCS, at the MMG yard. Lockheed Martin has agreed to become a minority investor in MMG, Fincantieri and MMG's parent said. Lockheed was not immediately available for a comment.
The Lockheed Martin-led group's LCS prototype, called the USS Freedom, started trials in Lake Michigan late last month. The prototype was developed from a Fincantieri hull design that has been used for super-fast ferries. It is being adapted for military use.
Fincantier has also supplied the diesel motors for the Freedom, as well as other components.
The Lockheed Martin-led group is competing with a General Dynamics (GD) for the contract, since the latter is also building its own version of the LCS.
The Navy will use to perform antisubmarine, mine and surface warfare missions close to shore, and plans to order 55 ships in all. The two groups are now bidding for work on the next three ships.
Each is slated to cost around $300 million, not including military equipment, but a Navy official said last week that the first two prototypes could be around $550 million each, according to press reports.
Fincantieri is owned by the Italian government, and does not receive state subsidies. The government plans to sell its stake to private investors.