Leonardo Identifies New Industrial Partner for Aerostructures Unit
Leonardo, a state-controlled Italian aerospace and defense company, has secured a new industrial partner for its troubled aerostructures business, CEO Roberto Cingolani announced Thursday. The move comes after years of efforts to restore profitability to the division, which manufactures components for Boeing's 787 aircraft.
"We have identified an investment partner in the defense and space sector to co-invest in a potential new industrial initiative in aerostructures," Cingolani said. He declined to provide further details but emphasized the group's commitment to finding a timely solution.
The aerostructures unit, which employs approximately 4,000 people in southern Italy, has faced challenges due to Boeing's production issues. Orders from Boeing in 2024 are expected to exceed those of 2023, but delivery rates remain low.
Leonardo has renegotiated component pricing with Boeing but acknowledges the need for further improvements. Despite increasing production rates, the company delivered only 49 fuselage sections and 28 stabilizers in 2023, highlighting the ongoing challenges.
"This is insufficient, and the problem is escalating," Cingolani acknowledged.
A comprehensive restructuring plan for the unit will be unveiled on March 11 during the group's strategy update. The partnership aims to reinvigorate the aerostructures business and secure its long-term viability.