ROME — Fincantieri is set to boost its naval business thanks to war-driven defense budgets, and the Italian shipyard has its sights on business opportunities that could total €20 billion (U.S. $21 billion) in the next five years, the company’s recently appointed CEO said Friday.

Pierroberto Folgiero made the announcement as he launched his first business plan, covering 2023-2027, after taking over the firm in May from outgoing CEO Giuseppe Bono.

“Spending on naval vessels is expected to grow in line with global defense budgets, led by Western European and Asia Pacific countries,” the Italian state-controlled yard said in a statement accompanying Folgiero’s new plan.

The plan envisages naval export opportunities worth €20 billion between 2023 and 2027, thanks to naval budgets rising 3.3% in Western Europe and 4.2% in the Asia-Pacific region, with a “significant increase” in demand for frigates, corvettes and submarines.

Sales are on the upswing as countries spend more on defense in the wake of the Ukraine war, and they will help push Fincantieri’s revenue to €9.8 billion by 2027, up from €6.7 billion in 2021, the firm said.

The yard also promised a “further strengthening” of its Italian and overseas facilities thanks to “the review and digitalization of production processes.”

In 2020, the United States selected Fincantieri’s FREMM frigate design for its new FFG(X) vessel, which will undergo production at Wisconsin’s Marinette Marine shipyard. Fincantieri has owned the yard since 2008, and it’s where the firm already builds Freedom-class littoral combat ships for the U.S. Navy with Lockheed Martin.

Folgiero, who formerly headed an engineering company, was appointed CEO of Fincantieri after Bono’s 20-year stint running the firm. Months after stepping down, the 78-year-old veteran passed away in November.

In the final months of Bono’s mandate, Fincantieri was touted as a possible purchaser of Oto Melara, the naval gun maker that owner Leonardo has been mulling selling.

Asked by Reuters on Friday if the firm was still interested, Folgiero said Fincantieri “always looks at all strategic options.”

The launch of the new business plan coincided on Friday with an announcement by Greece’s Elefsis Shipyards that it had signed a deal with Fincantieri to jointly build a naval vessel production line in Greece to construct ships ordered by the Greek government.

In its announcement of the new plan, Fincantieri said it had delivered more than 130 naval vessels since 1990, including about 50 to Italy and 50 to the United States. It has also built 120 cruise ships since 1990 and now has a share in the cruise market exceeding 40%.

Tom Kington is the Italy correspondent for Defense News.

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