destroyers

Italy Advances Naval Capabilities with $4.2 Billion DDX Destroyer Contract

Italy has secured a significant advancement in naval capabilities with the awarding of a $4.2 billion contract for the construction of the DDX-class destroyers. Managed by the European Organisation for Joint Armament…

September 25, 20266 min readMarine Insight

Italy Advances Naval Capabilities with $4.2 Billion DDX Destroyer Contract — Image for representation purposes only

Our take

The recent awarding of a $4.2 billion contract to Orizzonte Sistemi Navali (OSN) by the European Organisation for Joint Armament Cooperation (OCCAR) for the construction of two DDX destroyers represents a significant shift in European naval power and underscores a growing strategic focus on maritime security. This development isn’t occurring in a vacuum; it follows similar moves by other nations to bolster their naval capabilities, such as Sweden’s recent acquisition of four advanced frigates Sweden Bolsters Naval Capabilities with Acquisition of Four Advanced Frigates. Moreover, the increasing volatility of global trade routes, as evidenced by recent disruptions in the Strait of Hormuz Escalation in Strait of Hormuz: Maritime Traffic Disrupted by Reported Attacks, necessitates a more robust and integrated approach to maritime defense across Europe. The DDX program, with its focus on advanced sensor suites and integrated data processing, aims to provide Italy, and potentially other European partners, with a significantly enhanced ability to monitor and respond to evolving threats.

The selection of OSN, a consortium of Italian shipbuilding companies, highlights Italy’s growing role as a key player in European defense technology. The DDX destroyers are expected to incorporate advanced technologies, including electric propulsion and integrated combat management systems, reflecting a broader trend toward more efficient and networked naval platforms. While the exact specifications remain somewhat opaque, the emphasis on interoperability with other European naval assets suggests a move towards greater standardization and collaboration within the European Union’s defense framework. This contrasts with the more siloed approach often seen in national defense procurement, and signals a potential future where European navies increasingly operate as a cohesive force. The focus on advanced technology also aligns with broader efforts to reduce reliance on external suppliers, a lesson reinforced by recent geopolitical events. Even efforts towards sustainable propulsion, as seen in the Viking Astrea project Viking Astrea: Pioneering Hydrogen Propulsion for Sustainable Ocean Cruising, demonstrate a commitment to future-proofing naval capabilities, albeit in a different domain.

The broader implications of this contract extend beyond Italy’s immediate naval capabilities. It’s a clear indication of increasing investment in maritime defense across Europe, driven by concerns about regional instability, the rise of new maritime powers, and the growing importance of securing vital trade routes. The integrated nature of the DDX design—emphasizing data fusion and networked operations—points towards a shift in naval warfare, where information dominance and rapid response are prioritized over sheer tonnage. The ability to process and analyze real-time data from multiple sources, including satellites and unmanned systems, will be crucial for effectively countering asymmetric threats and maintaining maritime situational awareness. This underscores the increasing importance of ocean intelligence and the development of robust integrated data ecosystems for naval operations. The longitudinal data generated by these platforms, once operational, will be invaluable for refining threat models and improving future naval designs.

Looking ahead, the success of the DDX program will depend not only on the technical performance of the ships themselves but also on the ability of Italy and its European partners to integrate these platforms into a cohesive operational framework. The development and deployment of sophisticated cyber defenses to protect these networked systems will be equally critical. Furthermore, the evolution of autonomous underwater vehicles and other unmanned systems will likely reshape the roles and responsibilities of traditional naval vessels, requiring continuous adaptation and innovation. A key question remains: will this investment in advanced naval capabilities lead to a more stable and secure maritime environment, or will it contribute to a further escalation of military competition in strategically important regions?

Italy has signed a €3.7 billion ($4.21 billion) contract to build two new DDX destroyers for its Navy.

The contract was awarded by the European Organisation for Joint Armament Cooperation (OCCAR) to Orizzonte Sistemi Navali (OSN). The joint venture is owned by Fincantieri and Leonardo.

Fincantieri owns 51% of OSN and Leonardo owns 49%.

The two destroyers are due to be delivered in 2033 and 2035. They will replace two Durand de la Penne-class destroyers in the Italian Navy.

The ships will have new air and missile defence systems. Fincantieri and Leonardo said the DDX programme will give the Navy ships that can deal with different types of threats.

About €1.3 billion of the €3.7 billion contract is made up of options. The companies said the contract is worth about €1.8 billion to Fincantieri and €1.7 billion to Leonardo.

OSN will sign the related contracts with Fincantieri and Leonardo in the coming weeks. Fincantieri will design and build the ships. Leonardo will work on their combat systems.

Italy first announced plans for the DDX destroyers in 2020. At that time, the first ships were expected to be delivered in 2028.

A construction contract was reportedly planned for 2023, subject to funding.

Italian outlet Infodifesa reported that problems likely linked to operational requirements and funding caused a three-year delay.

Each DDX destroyer will be 180 metres long and have a displacement of 13,500 tonnes. The ships will have a range of more than 4,000 nautical miles, according to the companies.

The programme will upgrade the Italian Navy’s air and missile defence systems, Fincantieri and Leonardo said.

Radar and weapons

The ships will use the SADOC 5 C5I combat system, an S-band AESA radar and MBDA weapon systems.

The companies said the system will provide air and missile defence against missiles, ballistic missiles and hypersonic threats.

The destroyers will also have a DC power network with energy storage.

Other systems will include an integrated stabilisation and steering system, new thermal and electrical balance algorithms and an updated ship management system.

Italian electronics company ELT Group said it will provide the ships with a next-generation electronic warfare system.

The company said the system is designed to protect the ships and the naval force in complex, multi-domain operations.

Leonardo CEO Lorenzo Mariani said the two ships would give the Italian Navy new platforms with advanced operational capabilities and the ability to deal with a broad range of threats.

Fincantieri expects more naval orders

Fincantieri included the DDX deal in the roughly €5 billion of near-term orders it expected to secure, according to its first-quarter financial results and business outlook update in May.

The company said two ships under the Italian Navy’s Joint Maritime Mission System (J3MS) programme were also expected to be contracted within months.

Fincantieri also said it planned to finalise major contracts with foreign navies for surface ships, including FREMM frigates.

The company said it was also looking at service contracts in the Middle East and other key markets.

References: Baird Maritime, Reuters

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