Italy's state-controlled aerospace and defence group, Leonardo, has identified a new industrial partner for its aerostructures division, which has been struggling due to ongoing challenges faced by U.S. planemaker Boeing, CEO Roberto Cingolani announced on Thursday, according to Reuters.
Leonardo has been working for several years to return its aerostructures business to profitability. The division, which manufactures two sections for Boeing's 787 aircraft, has faced difficulties due to reduced demand and production adjustments from Boeing. In November, Cingolani stated the company was seeking new opportunities for the unit.
During a post-results analyst call, Cingolani confirmed that Leonardo had found an investment partner from the defence and space sector to co-invest in a potential new industrial initiative in aerostructures. While he did not disclose further details, he stressed that negotiations were at a critical stage. Reuters quoted him as saying, “Tight negotiations are ongoing in these hours and in these days,” adding that the company was committed to finding a resolution swiftly.
A broader restructuring plan for the aerostructures business, which employs approximately 4,000 people across four plants in southern Italy, will be unveiled during Leonardo's strategic update on March 11.
According to Reuters, Leonardo's latest results showed an increase in Boeing orders for 2024 compared to the previous year, and Cingolani noted that the company had successfully renegotiated component prices with the U.S. aerospace giant. However, delivery rates remain a challenge. In 2023, Leonardo delivered 49 fuselage sections to Boeing, up from 39 in the previous year, while stabiliser shipments fell from 32 to 28.
“This is not enough, the problem is getting bigger,” Cingolani admitted, underlining the urgency of addressing the division's financial struggles.
