First tranche of frigate deal signed

Armaris, a 50-50 joint venture between Thales and the French state shipyard DCN, said it has been notified by European Union authorities that the first tranche of an 11 billion euro contract it will share with Italy’s Finmeccanica to build 27 naval frigates has been signed.

A spokesman said the tranche represents only part of the 11 billion euro value of the full contract, but did not give the value of the tranche or say how many tranches the project will involve. He said further details will be disclosed tomorrow.

Armaris received the notification of the signing from the EU’s Joint Organisation for Armaments Cooperation (OCCAR). Earlier, French Defense Minister Michele Alliot-Marie said the contract that was signed was valued at more than 11 billion euro, but Armaris said that what was signed was only the first tranche.

The contract involves 17 frigates to be built for France and 10 for Italy, and is Europe’s largest ever naval shipbuilding project.