The first phase of the Medium Landing Ship (Lsm) program in the United States with Fincantieri is underway.
Fincantieri Marine Group (Fmg), the U.S. subsidiary of Fincantieri, has won a $30 million contract, the first from the U.S. Navy, for the Navy’s Lsm transport program. This was announced yesterday by the Trieste-based naval group, specifying that the “initial contract covers materials and engineering for the first four units of a 35-ship program.”
The award follows the announcement on February 18 by the U.S. Navy regarding Fincantieri Marinette Marine (Fmm), chosen alongside the American Bollinger Shipyards for the construction of the Lsm ships.
The overall order – estimated to be worth about $800 million – is part of the agreements signed in November during the Constellation frigate program review awarded to Fmm in 2020. At that time, U.S. Navy Secretary John Phelan announced the cancellation of plans to purchase Constellation-class frigates: the two frigates currently under construction were maintained, while the contract for the other four was canceled, in line with the U.S. Navy’s new strategic priorities.
The contract announced on April 15 formally marks the start of the program’s first phase and represents the first concrete step towards its execution.
WHAT THE LSM PROGRAM IS
The Lsm program is a fundamental component of the U.S. Navy fleet and the operational structure of the United States Marine Corps as it enables distributed operations, ensures greater mobility along coastlines, and allows rapid deployment and support of forces in contested areas, Fincantieri’s statement recalls.
During the initial production phase, Fincantieri Marine Group (Fmg) will be tasked with building at least four units, thereby consolidating its role as a central industrial player in the program’s implementation.
STARTING WITH THE FIRST CONTRACT
Thus, the contract award allows for the immediate procurement of materials with long lead times and the execution of critical engineering and operational activities necessary for the industrial and production preparation of the first four ships. This process will enable the start of unit construction already in the fourth quarter of 2026.
According to Fincantieri’s statement, this step represents a significant acceleration for the Lsm program. It also anticipates a future awarding of construction contracts through the Vessel Construction Manager (VCM) model, subject to applicable approvals and contractual agreements, the statement adds.
WORDS FROM CEO FOLGIERO
“The award of this contract represents an important step in the evolution of our long-standing collaboration with the U.S. Navy,” commented Fincantieri CEO and General Manager Pierroberto Folgiero, emphasizing that “It reflects the trust placed in the industrial capabilities developed in the United States and in our ability to support complex naval programs with discipline, speed, and technical excellence. Through continuous investments, a skilled workforce, and a resilient industrial base, Fincantieri is ready to support the Navy in adopting new operational concepts and future force requirements.”
FINCANTIERI’S AMERICAN COURSE
The new order thus fits into the agreement announced last November. That is when Fincantieri’s U.S. subsidiary “redesigned” the Constellation program with the U.S. Navy after the frigate order was downsized from six to two units.
The $22 billion program had come under increasing scrutiny from legislators and Pentagon leadership.
Of the original agreement’s $5 billion backlog, $3 billion is confirmed with the construction of two frigates, already underway at Fincantieri’s facilities in Wisconsin. One billion is indicated as compensation, while the remaining billion would be offset through new orders from the U.S. Navy itself.
The recent order for the U.S. Navy is among those expected by Fincantieri, which, during the presentation of its plan to 2030, forecast naval defense orders worth 5 billion euros within six months.
