Shipbuilder says it’s still in the game after Navy secretary cancels frigate program

The U.S. subsidiary of the Italian shipbuilding giant Fincantieri said it expects to receive new orders for warships even after Navy Secretary John Phelan on Tuesday canceled a plan to buy up to 20 Constellation-class guided-missile frigates at a combined cost of more than $22 billion.

The American arm, Fincantieri Marine Group, said it’s “reshaping” its shipbuilding strategy to better support the Navy.

“Fincantieri is consolidating its strategic partnership with the Navy, confirming its role as a key player in defining the future of American maritime defense through advanced industrial capabilities and long-term investments,” company officials said in a statement Wednesday.

Mr. Phelan authorized the completion of two Constellation-class frigates that were already under construction at Fincantieri Marinette Marine in Wisconsin. The company said it expects to build other warships there that reflect the Navy’s focus, including amphibious warfare vessels and icebreakers.

The company said it has invested more than $800 million in its four U.S.-based shipyards and employs more than 3,700 skilled workers. The significant expansion underscores their commitment to the local economy, Fincantieri Marine Group officials said.

George Moutafis, CEO of Fincantieri Marine Group, said the arrangement with the Navy provides necessary stability.

“As the Navy transitions to new vessel types, we stand ready to support their evolving needs, leveraging the strength of our American facilities and the expertise we have fostered,” Mr. Moutafis said in a statement.

“Our investments in the U.S. shipyards are a testament to our long-term vision: to be a cornerstone of the U.S. maritime industrial base and a driving force to sustain the momentum of the national shipbuilding renaissance, the American shipbuilding renaissance,” he said.