Italian shipbuilder Fincantieri and France's state-controlled Naval Group on Friday signed an accord to create an 50-50 joint venture in a bid to take on growing global competition in the industry.
The joint venture aims to bid for joint warship projects and beat rivals from China, Russia and the United States.
The agreement was signed on Friday by Fincantieri chief Giuseppe Bono and Naval Group's chief executive Herve Guillou aboard the frigate Frederico Martinengo in the Italian port city of La Spezia.
"This commitment will allow us to better serve our Navies, provide the appropriate support for common export operations and effectively lay the foundations for the consolidation of the European defence industry,” bono and Guillou said on the sidelines of the signing.
The alliance will allow the two companies to team up on research, development and procurement for some common projects including bilateral and export ones, the companies said.
The joint venture be headquartered in Italy's northwest port city of Genoa and will a subsidiary in Ollioules, France, with Bono and Guillou serving on its board of directors, the companies stated.
France and Italy first outlined plans in September 2017 to deepen their naval shipbuilding cooperation, which spans two decades.
