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Finmeccanica

Finmeccanica

Industry: 
Defense, Energy
Value of USG Contracts: 
1600
Symbol: 
NYSE:FINMF
States: 
AL
CA
DE
FL
GA
KS
MA
MS
NJ
NY
PA
SC
TX
Country: 
Italy
Sources: 

 

"Iran is continuing its aircraft-buying spree days after announcing a blockbuster, $27 billion order for 118 Airbus Group SE jetliners. ATR, the plane-making joint venture of Airbus and Italy’s Finmeccanica SpA, said on Monday that it would sell up to 40 turboprop planes to the Islamic Republic’s flag carrier Iran Air. The deal is valued at around 1 billion euros ($1.1 billion) at list price, the Toulouse-based plane maker said. The deal includes the purchase of 20 ATR 72 turboprop planes with options for 20 more... Iranian transport minister Abbas Akhoundi said last week that many of the country’s airports were largely idle because of a lack of planes after years of sanctions. Iran is seeking foreign investment to upgrade regional airports, which would likely be the main bases where the ATR planes would operate, the minister said. Patrick de Castelbajac, chief executive of Avions de Transport Regional, as ATR is formally called, said ''we are honored to take part in this new era in Iran by providing the national airline with aircraft that will strongly contribute to reinforce and boost regional transportation across the country.' French and Italian export credit agencies are assisting in financing of the planes." (The Wall Street Journal, “Iran to Buy up to 40 ATR Turboprop Planes,” 2/1/2016)

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"The historic nuclear deal reached between Iran and major world powers has yet to be implemented, but one clear winner has emerged: Iran's highest authority, Supreme Leader Ayatollah Ali Khamenei. Khamenei has yet to publicly back the accord, which lifts some sanctions on Iran in return for limits on its nuclear program. But he does stand to benefit, thanks to his close control of one of the most powerful and secretive organizations in Iran -- 'Setad Ejraiye Farmane Hazrate Emam,' or Setad... Already, one Setad firm appears to be moving to take advantage of the deal. Ghadir Investment Company, which the U.S. Treasury identified as a Setad-linked firm, signed a 500 million euro ($565 million) contract with the engineering unit of Finmeccanica, a spokesman for the Italian defense group said in August." (Reuters, "Conglomerate controlled by Iran's supreme leader a winner from nuclear deal," 9/15/2015)

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"Finmeccanica's engineering unit Fata has signed a 500 million euro ($543 million) contract with Iran's Ghadir to build a power plant in the Asian country, a spokesman for the Italian defense group said on Wednesday. Italian Foreign Minister Paolo Gentiloni held talks with officials in Tehran on Tuesday, the latest in a series of European officials seeking closer trade ties with Iran after its nuclear deal with world powers." (Reuters, "Italy's Finmeccanica signs Iran power plant deal for 500 million euro," 8/5/15)

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"Finmeccanica, a conglomerate of defense, aerospace, energy and transportation companies, provided Iran with 44 gas turbines through its subsidiary Ansaldo Energia as part of a project completed in 2002 to increase that country’s power capacity. This past summer, citing that tie, Los Angeles County Metropolitan Transportation Authority held off from awarding the company a contract to build it light rail cars. But the federal government had no such qualms, awarding the company contracts to sell products like weapons and tracked vehicles to the United States Army while the company was still in Iran. A spokesperson for the Finmeccanica said the company withdrew from Iran because it wanted to align itself with the policies of the Italian government and because it was sensitive to concerns by the U.S. government about companies operating in Iran."  From 2000-2009, the company was the recipient of $2.1 billion US federal funds.  They have withdrawn their activities from Iran.  (The New York Times, "Profiting from Iran, and the US," 3/6/2010)

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"However, Breda is owned by Finmeccanica, a conglomerate of defense, aerospace, energy and transportation companies, which has deals to provide Iran with 44 gas turbines through its subsidiary Ansaldo Energia." (LA Times, "MTA takes issue with potential contractor's ties with Iran," 7/18/2009)

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Ansaldo Energia, one of Finmeccanica's subsidiaries, notes the following on its website: "The bid for the supply of 32 simple-cycle gas turbine (GT) units to Iran, in which the main European manufacturers participated, ended with a pre-agreement in May 1999 and the signing of the contract in July of the same year between Ansaldo Energia Spa and its client, Mapna, the largest general contractor in Iran in the electricity field and affiliated to the country's Ministry of Energy. The 32 units, all of them equipped with V94.2 150MW gas turbines, total 4800 MW of power output, constituting roughly 20% of the entire production of the country. In the meantime, new contracts have been added to the initial one, bringing the final number of units supplied by Ansaldo Energia to 44." (Company website)

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