ROME, Feb 25 (Reuters) - Italian defence group Leonardo expects to sign a joint-venture accord for its aerostructures unit by the end of June, its CEO said on Wednesday, in a protracted deal that
Leonardo targets aerostructures JV signing by late June, CEO says
Leonardo Aerostructures JV: Timeline and Strategy
ROME, Feb 25 (Reuters) - Italian defence group Leonardo expects to sign a joint-venture accord for its aerostructures unit by the end of June, its CEO said on Wednesday, in a protracted deal that could finally allow the loss-making unit to take off.
The state-controlled group has been in talks for over 14 months with a financial and industrial partner whose identity has not been disclosed by the company due to confidentiality agreements, but which has been identified by media as Saudi Arabia's sovereign wealth fund.
Ownership and Control Plan
The joint venture will initially be equally owned by Leonardo and the new investor, but over time the Italian defence and aerospace conglomerate is ready to give up part of its control, with the timing depending on results achieved.
The aerostructures unit designs, produces and assembles components for manufacturers of both civil aircraft, like Airbus and Boeing, and military aircraft.
The unit was recently heavily hit by issues at the U.S. planemaker, whose orders account for about half of its business.
Boeing 787 Output and Outlook
Increased shipments for Boeing's B787 jet - from four per month at the beginning of 2025 to seven monthly at the end of the year - make "the plan for the future much more robust and reliable", Leonardo CFO Giuseppe Aurilio said.
Equal Share and Governance
EQUAL SHARE
Initial 50-50 Ownership
"At the beginning the company will be 50-50 - this is very important for the trust of the customers of the unit, important ones like Airbus and Boeing," Leonardo CEO Roberto Cingolani told analysts in a post-results call.
He added that the long-term plan for the business would position the company "in the top three of the world".
New Plant and Jobs Expansion
The project will include new jobs, a much wider product portfolio, and envisages a new plant in the partner's country, "transferring more and more (of aerostructures') activities while developing brand new ones somewhere else", Cingolani said.
Awaiting Political Clearance and Incentives
The long-delayed deal was supposed to be announced by the end of last year, but was postponed. It is now awaiting political clearance, with some incentives to soon be approved by partner's home country, he said.
(Reporting by Giulia Segreti in Rome; Editing by Gianluca Semeraro and Jan Harvey)
