Naval Group risks losing more orders after fiasco in Australia

French industrial group Naval Group It is in dire straits after losing its contract with Australia to supply new submarines and may have to review its workforce and industrial capabilities. Written by the French newspaper “Exhibition”He explained that the group had hoped to strike a deal with Canberra to fill its gaps in the export sector. Developments related to the September 15 announcement by US President Joe Biden of a new strategic, military and security alliance with the United Kingdom and Australia in the Indo-Pacific region, would lead to great uncertainty for the company and its approximately 15,800 employees. Basim OkosThe agreement of the three countries aims at greater exchange and integration of defense and information capabilities and to provide Australia with an important fleet of nuclear-powered submarines.

Now, as the newspaper reported “reverberation”, negotiations have been opened to compensate Naval Group, which will not be able to compensate for the losses incurred. Risk relates to long-term assets due to lower orders. Naval Group had problems in many countries, where it was not able to get the expected orders. According to “La Tribune”, Naval Group, like other French companies, is not able to anticipate competition in those countries that are strategic for Paris. It is a condition also linked to the fact that the state is very present within it. Among these is Poland, which has previously chosen to design three frigates Spanish Navantia NS La Tedesca thyssenkrupp Marine Systems.

In Romania, La Tribune also reported, the government could follow in its footsteps by withdrawing from a 1.2 billion-euro contract to supply four Gowind-class corvettes, after Naval Group won the tender with Romanian shipbuilder Constanța in July of 2019. Damen Group, a Dutch defense company, appealed against the arbitration award, after losing the appeal ruling to the Supreme Court of Cassation and Justice. The latter decided to refer the case back to the Constitutional Court last May, which should therefore put an end to the controversy. Moreover, according to several identical sources cited by the two French newspapers, it appears that in Kingdom Saudi Arabia Naval Group has allowed itself to be outdone by Fincantieri, Navantia and South Korean companies. Again according to the sources cited by the two French newspapers, Fincantieri had bypassed the competitor also in Morocco, where it will be in negotiations for the sale of two Frame frigates.

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