Leonardo in talks on alliances and joint ventures, CEO says
FLORENCE, Sept 9 (Reuters) -Italian aerospace and defence group Leonardo LDOF.MI remains in talks to define its planned alliances and joint ventures with European peers, its chief executive said on Monday, despite the sector's struggles to keep pace with non-European rivals.
Talks with Airbus AIR.PA and Thales TCFP.PA "go ahead," CEO Roberto Cingolani said at an event in Florence.
In July Leonardo confirmed it was negotiating with the two French companies over possible alliances and synergies for a stronger Europe in the space industry.
On the planned joint venture with Germany's Rheinmetall RHMG.DE, the chief executive said technical groups were working on a weekly basis. "At the moment things seem to be going well, I think we will be able to do it fairly quickly."
In July the two companies agreed to form a joint venture to produce tanks and other land defence systems, which is expected to be finalised by September.
The European Union wants to pursue a more aggressive European space strategy to prevent being muscled out by U.S. and Chinese launcher technology.
In July, Cingolani said Leonardo's new strategic framework would be ready by the end of this month.
The company is "slightly ahead of schedule" in drawing up a strategy for its new space division, he said on Monday. "The plan is ready, a group including external advisors is working to include it in the updated business plan."
Leonardo manufactures satellites, orbiting infrastructure and sensors and manages satellite services and propulsion and launching systems.
Western governments will continue to increase spending on weapons to counter Russia and China, defence firms executives told Reuters in July, brushing off concerns that political upheaval in the United States and Europe could curb military budgets.
Reporting by Silvia Ognibene, writing by Cristina Carlevaro, editing by Alvise Armellini and David Evans
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