Elefsis Shipyards, Fincantieri sign memorandum to build warships in Greece

Greece plans to buy three corvettes at a cost of about 1.5 billion euros ($1.6 billion) for its navy and wants some of them to be built in Greece. The initial agreement with Fincantieri includes building two corvettes with the option for one more at the Elefsis Shipyards along with the necessary upgrades and the transfer of know-how and technology at an estimated cost of about 80 million euros, the ministry said.

Greece's Elefsis Shipyards and Italy's Fincantieri on Friday signed a memorandum of understanding to build a production line of warships in Greece on condition they win a contract from Athens, the Greek Development Ministry said. Greece plans to buy three corvettes at a cost of about 1.5 billion euros ($1.6 billion) for its navy and wants some of them to be built in Greece.

The initial agreement with Fincantieri includes building two corvettes with the option for one more at the Elefsis Shipyards along with the necessary upgrades and the transfer of know-how and technology at an estimated cost of about 80 million euros, the ministry said. Implementation of the deal hinges on a decision by the Greek government and the Greek Defence Ministry after they examine all submitted proposals for the construction of the corvettes, Development Minister Adonis Georgiadis said in a statement.

"However, today's memorandum makes sure that Elefsis Shipyards can meet the expectations and deliver the (corvettes) programme if they are picked up by the Hellenic Navy," he added. The Elefsis Shipyards have been hard hit by competition from Asian shipyards in recent years and Greece has agreed to sell the debt-ladden business to Athens-based Onex as part of a plan to rescue the company and safeguard jobs.

Greece has already agreed to buy three Belharra navy frigates and six additional Rafale fighter jets from France. The three French frigates will be built by Naval.

($1 = 0.9414 euros)

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