ITALY AEROSPACE 2016 Civil aviation - Defense - Aerospace - Regional clusters SMEs - Knowledge exchange - Innovation - Internationalization ...

 
CONTINUE READING
ITALY AEROSPACE 2016 Civil aviation - Defense - Aerospace - Regional clusters SMEs - Knowledge exchange - Innovation - Internationalization ...
ITALY AEROSPACE
                          2016

   Civil aviation - Defense - Aerospace - Regional clusters
SMEs - Knowledge exchange - Innovation - Internationalization
ITALY AEROSPACE 2016 Civil aviation - Defense - Aerospace - Regional clusters SMEs - Knowledge exchange - Innovation - Internationalization ...
Dear Reader,

The Italian Aerospace Industry is an example of resilience throughout these volatile
times. Each of the six main regions within the aerospace sector have displayed strength,
a drive towards continuous innovation and a push to further develop the industry in the
country. Though many wish to see this country unite under a single aerospace flag, it
seems that competition and rivalry amongst regions and clusters also fuels the wheels of
this moving vessel.
Many companies have seen the current political instability in Europe as something
that could bring detriment to the aerospace industry, especially given UK-American
connections, yet others believe that this may be an opportunity to make the country
more of a hub for international players, especially in the Lombardy region. New Earth
observation technologies are constantly being developed and innovated to improve the
country’s emergency response, as well as to address the migrant crisis in North Africa
and the Middle East.
New decommissioning solutions are being created in the country in order to address the
thousands of new satellites forecast to be launched into orbit in upcoming years. Some
also have plans to lead the market in terms of satellite production. A new race for space
has arisen and Italy aims to be riding the wave of it.
Though most companies agree that the way forward is through internationalization,
strong investments are also being made in order to place Italy at the forefront of the
aerospace industry. With R&D developments and unparalleled technologies being
created in CIRA, as well as the creation of a UAV testing site in Grottaglie Airport, the
country is not slowing down despite Leonardo’s decision to outsource some of their
manufacturing activities. SMEs are certainly facing difficulty, which means that the race
to staying alive will be fiercer than ever in upcoming years.
GBR has had the pleasure of learning more about the Italian aerospace industry over the
course of several months. We invite you to learn more about the entrepreneurial spirit of
the country, as well as understand the larger companies at play, which have been running
the show from the origins of the sector. We would also like to thank the hundreds of
companies who participated in order to create this report. This would not be possible
without your support. We trust you will enjoy our findings.

                                                                        Alice Pascoletti
                                                                       Elisa Iannacone
                                                                       Catherine Howe
                                                                         Harriet Bailey

         AP                     EI                     CH                    HB
ITALY AEROSPACE 2016 Civil aviation - Defense - Aerospace - Regional clusters SMEs - Knowledge exchange - Innovation - Internationalization ...
Bern

                                                                                                                                                                                       SWITZERLAND                                                                              AUSTRIA

Introduction to                                                                                                                                                                                                                                                                                                                         HUNGARY

                                                                                             Civil
                                                                                                                                                                                                                                             Bolzano

Italy's aerospace                                                                                                                                                                                                                    TRENTINO-

                                                                                            aviation                                                                                                                                 ALTO ADIGE                FRIULI-                SLOVENIA
    industry                                                                                                                                                                                                                        Trento
                                                                                                                                                                                                                                                              VENEZIA-
                                                                                                                                                                                                                                                               GIULIA
                                                                                                                                                                                                                                                                                          Ljubljana          Zagreb
                                                                                                                                                                               AOSTA                                                                                                                                                                                SERBIA
                                                                                                                                                                                                             LOMBARDIA
A guide to the country's                                                                     A buoyant industry                                                                                                                              VENETO                   Trieste                                               CROATIA
capabilities and regional                                                                 worldwide is also becoming                                                                                             Milan
                                                                                                                                                                                   Turin                                                                    Venice
         clusters                                                                              very competitive
                                                                                                                                                                                   PIEMONTE
                                                                                                                                                                                                                                                                  Gulf of
                                                                                                                                                                 FRANCE                                                                                           Venice
             6-35                                                                                 72-121                                                                                                                EMILIA-ROMAGNA

                                                                                                                                                                                                             Genoa                            Bologna
                                                                                                                                                                                                                                                                                                                         BOSNIA AND
                                                                                                                                                                   44˚                        LIGURIA                                                                                                                   HERZEGOVINA
                                                                                                                                                                                                                                                                                                                                                            Sarajevo

                                                                                                                                                                          MONACO                                                                      SAN

                                           Space                                                                                      Defense                                                 Ligurian
                                                                                                                                                                                                Sea
                                                                                                                                                                                                                                    Florence       MARINO                    Ancona

                                         capabilities                                                                               and security                                                                                    TOSCANA                Perugia
                                                                                                                                                                                                                                                                    MARCHE

                                                                                                                                                                                                                                                                                                                                                            MONTENEGR
                                                                                                                                                                                                                                                         UMBRIA

                                          How companies support                                                                                                                                                                                                                                          Adriatic                                                   Podgori
                                                                                                                                       Opportunities within a                                                                                                                                             Sea
                                         ASI and ESA programs and
                                                                                                                                         captive market                                               Corsica
                                         technological development
                                                                                                                                                                                                       (FR.)
                                                                                                                                                                                                                                                    VATICAN                     ABRUZZO
                                                                                                                                                                                                                                                      CITY Rome
                                                  38-71                                                                                        122-131                                                                                                            LAZIO
                                                                                                                                                                                                                                                                                             MOLISE
                                                                                                                                                                                                                                                                                             Campobasso

                                                                                                                                                                                                                                                                                                           APULIA                   Bari
                                                                                                                                                                                                                                                                                      CAMPANIA

                                                                                                                                                                                                                                                                                                                                                            Brindisi
                                                                                                                                                                                                                                                                                 Naples                                                                               Strait
  Introduction to Italy's Aerospace Industry      57. Signals from Above                                109. Mechanical parts, actuation and engines                                                                                                                                         Salerno         BASILICATA                                                 of
  8. The Path to International Success            59. Interview with Intecs                             110. Interview with Ing. Bertolotti
  12. Interview with AIAD                         60. Interview with e-GEOS                             111. Interview with Labormet Due                                                                                                                                                                                                                             Otrant
                                                                                                                                                                   40˚
  13. Supporting Innovation and Knowledge         61. Interview with PSI                                112. Interview with UAS                                                                                                              Tyrrhenian Sea                                                                          Golfo di
                                                  62. Interview with D-Orbit                            113. Interview with Marc Ingegno                                                       SARDEGNA
      Exchange
  15. Interview with Ministry of Education,       64. Interview with MapSAT                             114. Design and Interiors                                                                                                                                                                                                    Taranto
      University and Research                     65. Interview with Sistematica                        115. Interview with Iacobucci HF Aerospace
  18. Interview with Leonardo                     66. Interview with OHB                                116. Interview with A.Abete
  20. Interview with CETMA                        67. Interview with Aero Sekur                         117. Interview with Geven
  21. Uniting the Front                           68. Innovation                                        118. Testing and Safety                                                                                                                                                                                        CALABRIA
  22. Lazio profile                               70. Interview with Sòphia High Tech                   119. Interview with Bytest (TÜV SÜD)
  23. Interview with Lazio Connect                71. Interview with Itacae                             120. Interview with RTM Breda                                                                                         Mediterranean Sea
  24. Lombardy profile                                                                                  121. Interview with ATT
  25. Interview with Lombardy Aerospace Cluster
                                                                                                                                                                                                                                                                                                                                  Catanzaro
  26. Piedmont profile                            Civil aviation                                                                                                                                                                                                                                                                                        Ionian
  28. Campania profile                            74. Spreading Wings                                   Defense and Security                                                                                                                                                                                                                             Sea
  29. The Italian Aerospace Research Center       77. Interview with ENAC                               124. Breaking ranks
      (CIRA)                                      78. Interview with Boeing                             127. Interview with Northrop Grumman                                                                                                                                Palermo
  30. Apulia profile                              79. Interview with Umbra Cuscinetti                   128. Interview with Apulian Aerospace
  31. Interview with DTA - DAP                    80. Going Global                                           Consortium
  32. Umbria profile                              82. Interview with Mecaer Aviation                    129. Interview with Vitrociset
  33. Interview with Umbria Aerospace Cluster
  34. Many Bricks Build a Wall
                                                  84. Interview with Bisiach & Carrù
                                                  86. Interview with Fidia
                                                                                                        130. Innovation in Defense
                                                                                                        132. Expert article by Eurolink Systems
                                                                                                                                                                                                 Italy                                                                             SICILIA

  36. GBR 2016 Survey on Italy's Aerospace        88. Interview with Tecno Tessile Adler                                                                                                                                                        Strait
      Industry (I)                                90. Interview with UTC                                                                                                                                                                          of
                                                                                                                                                                                                     International Boundary
                                                  91. Interview with ASE                                Survey and Company Directory                                                                                                            Sicily                                                                                     Italy Aerospace 2016
                                                                                                                                                                                                                                                                                                                                          Industry Explorations
                                                  92. Interview with Tekspan                            136. GBR 2016 Survey on Italy's Aerospace                                                    Regional Boundary                                                                                                                 Global Business Reports
  Space Capabilities                              95. Interview with AENCOM                                  Industry (II)                                                                           National Capital
  40. Through Space and Time                      97. Interview with Tubiflex                           140. Table of Capabilities                                                                                                                                                                                        This research has been conducted by
  41. ASI Missions and Projects                   98. Interview with Secondo Mona                       144. Company Directory                                                                                                                                                                                                 Alice Pascoletti, Elisa Iannacone,
                                                                                                                                                                                                                                                                                                                             Catherine Howe and Harriet Bailey
  44. Interview with ASI                          99. Components and Manufacturing                      150. Credits
  45. Interview with ESA                          100. Interview with Prima Industrie                                                                              36˚                                                                                                                                              Edited by Alfonso Tejerina and Mungo Smith
                                                                                                                                                                                                                                                                                                                     Graphic design by Designa / Özgür & Deniz
  46. Interview with EPSL                         102. Interview with TXT Group
  47. Interview with Space Engineering            104. Interview with Manta Group                                                                                                                                                                                                             Valletta                   A Global Business Reports Publication
                                                                                                                                                                                                                                                                                  MALTA
                                                  105. Interview with Aviorec
                                                                                                                                                                                                                                                                                                                            For updated industry news from our
  48. Interviews with ALTEC                                                                                                                                                                                                                                                                                             on-the-ground teams around the world,
  50. Space Economy                               106. Interview with Delta-Ti Impianti                                                                                                                                                                                                                               please visit our website at gbreports.com,

  52. Interview with SITAEL                       107. Interview with OVS Villella                                                                                                     0        50           100 Kilometers
                                                                                                                                                                                                                                                                                                                      subscribe to our newsletter by signing up
                                                                                                                                                                              8˚                                                                   12˚                                                                16˚ to our VIP list through our website,
  54. Interview with IDS                          108. Interview with Protom Group                                                                                                                                                                                                                                         or follow us on Twitter: @GBReports
                                                                                                                                                                                       0                50              100 Miles

  Industry Explorations                                            ITALY AEROSPACE 2016                                                Global Business Reports
ITALY AEROSPACE 2016 Civil aviation - Defense - Aerospace - Regional clusters SMEs - Knowledge exchange - Innovation - Internationalization ...
GBR • Industry Explorations • ITALY AEROSPACE 2016

                                                     INTRODUCTION
                                                          TO ITALY'S
                                                        AEROSPACE
                                                          INDUSTRY

                                                              “The Italian aerospace industry is currently the fourth largest in Europe
                                                          and the seventh largest in the world. Our domestic industry has focused its
                                                         skills on specific technological areas where there is significant international
                                                       demand, which has served to enhance the capabilities of both large companies
                                                                                                                            and SMEs.”

                                                                                                                      - Guido Crosetto,
                                                                                President, Italian Industries Federation for Aerospace,
                                                                                                         Defense and Security (AIAD)
Image courtesy of Leonardo
ITALY AEROSPACE 2016 Civil aviation - Defense - Aerospace - Regional clusters SMEs - Knowledge exchange - Innovation - Internationalization ...
EDITORIAL                                                                                                              Global Business Reports   Global Business Reports                                                                                                                     FACTSHEET

                                        The Path to
                                                                                                                                                                                                                   GROWTH, 2006-2015
                                                                                                                                                                                                                    Source: International Monetary Fund

                                                                                                                                                     %

                                   International Success
                                                                                                                                                      3                                                                                                                                                       3

                                                                                                                                                      2                                                                                                                                                       2

                                                                                                                                                      1                                                                                                                                                       1

                                       Aerospace players increasingly look abroad                                                                     0                                                                                                                                                       0

                                                                                                                                                     -1                                                                                                                                                       -1

                                                                                                                                                     -2                                                                                                                                                       -2

                                                                                                                                                     -3                                                                                                                                                       -3

                                                                                                                                                     -4                                                                                                                                                       -4

                                                                                                                                                     -5                                                                                                                                                       -5
8                                                                                                                                                                                                                                                                                                                   9

                                                                                                                                                     -6                                                                                                                                                       -6
                                                                                                                                                                2006             2007        2008     2009               2010                     2011      2012    2013           2014              2015

                            Long considered a European powerhouse            activity, from components and services

                                                                                                                                                                           1.82
                            for innovation and design, it follows that       to data collection and handling. Italy was
                            Italy should be well respected on the
                            global stage in an industry that holds these
                            proficiencies as a necessity above all else.
                                                                             the third country in the world to launch a
                                                                             satellite with the San Marco 1 mission in
                                                                             1964 and, today, is one of the largest con-                                           TRILLION USD
                                                                                                                                                                                                                                                                   35,708 USD
                                                                                                                                                                                                                                                                           GDP per capita
                            With a turnover of over €15 billion across       tributors to many European Space Agency                                                           GDP                                                                                            (PPP)
                                                                                                                                                                                                                     ITALY AT A GLANCE
                            the Aerospace and Defense & Security             (ESA) projects, playing a key role in both                                                                                              Sources: CIA World Factbook / IMF

                            sectors, Italy's aerospace industry accounts     the International Space Station (ISS) and
                            for 75% of that at €11 billion, making it        the ExoMars project.

                                                                                                                                                               16.7%                                                                                                 2.1%
                                                                                                                                                                                                             Population: 61,855,120 (July 2015 est.)
                            the seventh largest in the world and fourth      Italy is home to several large multination-                                                                                            Land Area: 301,340 sq km
                            largest in Europe. It may only account for       als, which include Leonardo (formerly                                                                                                  Official Language: Italian

                            0.05% of the GDP, but with a workforce of        Finmeccanica), Thales Alenia Space, Avio
                                                                                                                                                                                                                            Capital: Rome
                                                                                                                                                                                                           Chief of State: President Sergio Mattarella
                            48,000 people and a network of over 600          Aero and UTC Aerospace Systems. With                                                                                                      (since 3 February 2015)
                            small and medium enterprises (SMEs) as           2015 revenue figures at €13 billion and                                                                                  Head of Government: Prime Minister Matteo Renzi
                                                                                                                                                                                                                      (since 22 February 2014)
                            well as large key players, the industry is       47,000 employees across 15 countries,                                                        Total investment                         GDP: $1.82 trillion (2015 est.)
                                                                                                                                                                                                                                                                     Current account balance
                                                                                                                                                                            (% of GDP)                                                                                     (% of GDP)
                            considered to be of great strategic impor-       Leonardo is organized in seven divisions:                                                                                            Growth Rate: 0.8% (2015 est.)

                            tance to all regions in the coming years.        Helicopters, s, Aerostructures, Airborne
                                                                                                                                                                                                           GDP per Capita (PPP): $35,708 (2015 est.)
                                                                                                                                                                                                        GDP Composition by Sector: 2.2% agriculture,
                            With a long history in mechanical engi-          & Space Systems, Land & Naval Defense                                                                                         23.6% industry, 74.2% services (2015 est.)

                                                                                                                                                                 11.9%                                                                                               0.1%
                            neering alongside innovation and research        Electronics, Defense Systems, and Secu-                                                                                Exports: $454.6 billion (2015 est.): engineering products,
                                                                                                                                                                                                       textiles and clothing, production machinery, motor
                            supported by the many institutions and           rity & Information Systems. The Military                                                                                 vehicles, transport equipment, chemicals; foodstuffs,
                            universities, Italy’s aerospace industry         & Defense sector accounts for 65% of                                                                                     beverages, and tobacco; minerals, nonferrous metals

                            demonstrates vast capabilities. Among the        Leonardo’s business, and the field of civil
                                                                                                                                                                                                    Imports: $389.2 billion (2015 est.): engineering products,
                                                                                                                                                                                                       chemicals, transport equipment, energy products,
                            large players and SME network we can find        aviation accounts for the remaining 35%.                                                                                minerals and nonferrous metals, textiles and clothing;
                            competences across the entire aeronautics        Under Leonardo’s new strategy, effective                                                  Unemployment rate                             food, beverages, tobacco                                inflation

                            value chain and in every aspect of space         since January 1st 2016, heralded by the
                                                                                                                    10▶
    Industry Explorations                                     ITALY AEROSPACE 2016                                         Global Business Reports   Global Business Reports                                          ITALY AEROSPACE 2016                                                  Industry Explorations
ITALY AEROSPACE 2016 Civil aviation - Defense - Aerospace - Regional clusters SMEs - Knowledge exchange - Innovation - Internationalization ...
EDITORIAL                                                                                                                 Global Business Reports   Global Business Reports                                                                          Image: Finmeccanica                   EDITORIAL

     ◀8
     change in name from Finmeccanica, the
     company has converged the operations of                                                                                                                                                                                                              credibly nebulous given the vast amount of
     its fully-owned subsidiaries AgustaWest-                                                                                                                                                                                                             regional consortiums.
     land, Alenia Aermacchi, Selex ES, OTO                                                                                                                                                                                                                A push for collaborating amongst com-
     Melara and WASS to promote cohesion                                                                                                                                                                                                                  panies is also emerging. “I have always
     and efficiency within the business. DRS                                                                                                                                                                                                              noticed that Italy had an industrial bonsai
     Technologies is the remaining U.S. sub-                                                                                                                                                                                                              mentality", said Alfonso Centuori, Presi-
     sidiary, and the remaining joint ventures                                                                                                                                                                                                            dent of the Apulian Aerospace Consortium.
     are MBDA (with BAE Systems and Air-                                                                                                                                                                                                                  “Some Italian aerospace entrepreneurs try
     bus Group), Telespazio and Thales Alenia                                                                                                                                                                                                             to make their own company the strongest
     Space (both with Thales) and ATR (with                                                                                                                                                                                                               in the world, covering all industrial pro-
     Airbus Group).                                                                                                                                                                                                                                       cesses, from composites to metal sheets,
     An unusual aspect of the Italian aerospace                                                                                                                                                                                                           machined parts, assembly, engineering,
     industry is its characterization by a net-                                                                                                                                                                                                           design and painting. But when this bonsai
     work of SMEs, many of which compete                                                                                                                                                                                                                  company sits before a Tier-1 company and
     for contracts with Leonardo as the leading                                                                                                                                                                                                           they request 1 million man-hours of labor
     national OEM. One of the key elements of                                                                                                                                                                                                             per year, these kind of SMEs can only of-
     Leonardo’s new strategy is the cap on the                                                                                                                                                                                                            fer fractions of it," adds Centuori, who
     overall business that a supplier may con-                                                                                                                                                                                                            calls learning to collaborate a “Darwinian
     duct with the company at a maximum of                                                                                                                                                                                                                industrial evolution” that is indispensable
     75%, with the aim of encouraging com-                                                                                                                                                                                                                for the future development of the region
     petition between companies. “A fully or                                                                                                                                                                                                              and the country.
     mostly dependent supplier would have no                                                                                                                                                                                                              There is a national control for regions to
     stimulus to develop or take in new practic-                                                                                                                                                                                                          have a strong specialty: it is called the Ital-
     es and the company would therefore have                                                                                                                                                                                                              ian meta-district of aerospace. Lombardy
     no opportunity to grow or diversify their                                                                                                                                                                                                            and Piedmont specialize in space, military
10   activities,” explained Mauro Moretti, CEO                                                                                                                                                                                                            aircraft and helicopters; Campania and                   11
     and general manager of Leonardo. “If, on                                                                                                                                                                                                             Apulia are focused on civil aircraft and the
     the other hand, our suppliers are compet-                                                                                                                                                                                                            manufacturing of the different airframes;
     ing in international markets,” Moretti con-                                                                                                                                                                                                          the North takes care of final assembly lines
     tinued, “we know that their products and                                                                                                                                                                                                             (where they deliver the aircraft to the cus-
     services are of high quality and offered                                                                                                                                                                                                             tomers), the satellites and warfare; Lazio
     at an appropriate price. This assists our                                                                                                                                                                                                            is more into radar, armaments, cyberware
     growth and, in turn, we are able to provide                                                                                                                                                                                                          and other types of military products. They
     them with more business. The objective,                                                                                                                                                                                                              all have a strength and respect each other’s
     therefore, is to support sustainable growth                                                                                                                                                                                                          operations.
     for companies across the supply chain.”                                                                                                                                                                                                              Agreeing that there has been a historical
     At a sub-national level, Italy has 11 main                                                                                                                                                                                                           lack of support from the national govern-
     aerospace districts, of which the six key                                                                                                                                                                                                            ment, Sergio Chiamparino, president of
     regions are Lombardy, Lazio, Piedmont,         more focused on aerostructures. At a na-        Italian government provides a lot of sup-            tor, is cited by many companies as a key        Fucine Umbre, an Umbria-based company            Regione Piemonte, cited the establishment
     Campania, Apulia and Umbria. Each re-          tional level however, and even within some      port to the southern regions of Italy, such          challenge and driver for internationaliza-      specialized in forging, complete parts and       of a national governing unit as a means to
     gion lends itself to particular capabilities   regions, the capabilities are extensive and     as Campania, Apulia and Lazio, giving                tion to identify new opportunities. “Aero-      treatment processes. “We need greater co-        organize the industry and align common
     according to its history and the presence      cover the entire value chain. “Italy is one     them the chance to grow quickly using                space is a public sector entity. There is no    hesion between the public and private sec-       objectives. “We were recently able to de-
     of major players within particular fields.     of the richest countries in Europe when         government support and funds,” explained             way to have a private sector market at the      tors. Italy is a very competitive region and     fine a multiregional program as part of the
     Piedmont and Lombardy have particularly        it comes to aerospace,” claimed Filippo         Guglielmo Pisapia, CEO of S.I.M.E. “The              moment so in a way the future is of a stable    a very powerful market, with companies           national strategic plan for the space econ-
     extensive capabilities, although Lombardy      Ugolini, president of AGT Engineering.          northern parts of Italy,” he continued,              nature, because it is difficult to grow with-   that compete worldwide, and a very strong        omy, which is supposed to be co-financed
     is best known for helicopters due to the       “The country more or less covers all areas      “have more traditional companies that                out competition,” explained Marco Casuc-        supply chain.” Alunni added: “There are,         by both the state and regional govern-
     presence of AgustaWestland (now merged         of aerospace technologies available, with       were started earlier and have a slower               ci, managing director of Intecs Solutions.      however, issues that need to be solved,          ments, as well as the private sector.”
     into Leonardo’s helicopter division). The      mechanical, industrial and electronic ca-       growth rate, yet are more robust and re-             It is clear that the national and regional      and the government is needed to support          Italy is a strong player within the aero-
     region also boasts the capacity to produce     pabilities across space and aircraft. When      silient as a result. Going south, there are          governments have recently been paying           the industry through programs and R&D            space sector, with extensive capabilities
     an aircraft from inception to delivery. At     taking these 640 smaller companies and          bigger companies that have grown faster              more attention to the aerospace sector and      funding.”                                        across its leading companies and SMEs.
     15,000 and 15,800 employees respective-        their combined capabilities into account,       with good personnel from universities and            its growth. “We receive less funding than       Historical       cultural   competitiveness      With increased support from the govern-
     ly, these two regions represent the largest    it is clear to see that the opportunities are   an injection of capital, however they have           other countries, but it seems that change       amongst regions and between northern and         ment and continued development across
     workforce by region dedicated to the aero-     wide in many areas.”                            a shorter history and heritage.”                     is on the horizon in the ways in which the      southern Italy are also matters that many        the different players, the country will con-
     space industry.                                The rate of growth of each region corre-        Decrease in support through publicly                 government and ministries are seeking to        companies are trying to address. A want          tinue to grow in prominence and further
     Lazio has a particularly strong space seg-     lates to the cohesion of its infrastructure     funded activities, such as government-               manage and support the SME network,”            for a national Italian aerospace consortium      cement its position at the forefront of the
     ment, while Apulia and Campania are            and institutional support received. “The        funded programs within the defense sec-              commented Antonio Alunni, president of          is present, but the steps to create it are in-   international aerospace community. ▬

     Industry Explorations                                       ITALY AEROSPACE 2016                                          Global Business Reports   Global Business Reports                                       ITALY AEROSPACE 2016                                                Industry Explorations
ITALY AEROSPACE 2016 Civil aviation - Defense - Aerospace - Regional clusters SMEs - Knowledge exchange - Innovation - Internationalization ...
INTERVIEW                                                                                                                   Global Business Reports   Global Business Reports                                                                                                                EDITORIAL

                                                    personnel nationwide. The industry gener-
                                                    ated more than €15 billion for the Italian
                                                                                                    where Italy plays a leading global role,
                                                                                                    comprising advanced technologies and
                                                                                                                                                           Supporting Innovation
                                                                                                                                                           and Knowledge
                                                    economy in 2014, with aerospace account-        a highly skilled workforce, among other
                                                    ing for 75% of that total.                      benefits.
                                                    The federation has grown over the past 70       Although defense represents only 1% of

                                                                                                                                                           Exchange
                                                    years and is increasingly a stable reference    our GDP, it contributes on average a sur-
                                                    point for the aerospace industry in front of    plus of up to €5 billion (8 to 10%) to our
                                                    governmental agencies and institutions. It      trade balance.
                                                    is considered a forum for sector-specific
                                                    economic and industrial issues and poli-        Could you tell us more about the impor-
                                                    cies. Within our research and technological     tance of the aerospace industry to par-
                                                    innovation activities, AIAD coordinates         ticular provinces in Italy?
                                                    the activities of three platforms: ACARE        Italy has 11 aerospace districts, with Cam-
                                                    Italy for Aeronautics; SERIT for security;      pania, Lazio, Lombardy, Piedmont and

     Guido
                                                    and SPIN-IT for space.                          Apulia being the five most important.
                                                                                                    The remainder are located in Basilicata,               The importance of Italian universities
                                                    How do you try to open expert markets           Emilia Romagna, Liguria, Sardinia, Tus-                and research institutions
     Crosetto                                       for Italian manufacturers?
                                                    AIAD maintains close links with similar
                                                    associations abroad, enabling us to take
                                                                                                    cany and Umbria. Although Varese in
                                                                                                    Lombardy has earned the nickname “the
                                                                                                    winged province” due to the presence of
                                                    advantage of the experience and knowl-          important companies in the history of the
                                                    edge available worldwide. We also con-          Italian Air Force, I do not believe it is pos-
                                                    duct significant activities in support of the   sible to determine one leading aerospace
                                                    internationalization process alongside the      district. AIAD is also a collaborator with
     President                                      Secretariat General of Defense and the          the National Technology Cluster for Aero-
     ITALIAN INDUSTRIES                             Italian Space Agency (ASI), as well as          space (CTNA) which coordinates activi-
12   FEDERATION FOR                                 with the Italian Trade Promotion Agency         ties across the country.                               Universities and research institutions play      technologies, making Lazio a key region for      to region, the local industry emphasis and              13
     AEROSPACE, DEFENSE AND                         (ICE) through representation at major in-       The Piedmont aerospace district is one                 a very active role in the overall develop-       innovation and the development of the Ital-      therefore our own capabilities differ,” said
     SECURITY (AIAD)                                ternational events and business conven-         of the most important districts because it             ment and innovation of Italian industry.         ian space sector,” outlined Onofri, further      Romolo Marcelli, senior researcher at IMM,
                                                    tions. AIAD aims to promote possible            covers the entire spectrum of aerospace                From skilled vocational training and niche       identifying Campania’s Italian Aerospace         a division of CNR.
                                                    collaborations between Italian companies        activities. The region combines research               specialized engineering programs to inde-        Center for Research (CIRA) as demonstrat-        A move to invest in the aerospace field can
                                                    and their foreign counterparts, and match       and production, as evidenced by the con-               pendent and collaborative research projects,     ing particular excellence in high-speed flow     be clearly seen across the regions. In Apulia
                                                    international demand with Italian supply.       tinuous growth rate of 6.7% in production              Italian universities are a key component of      and re-entry vehicle applications.               specifically, regional authorities have taken
                                                    Furthermore, we also offer international        volume. Piedmont also benefits from three              the industrial sector.                           Major investments have been made in              a keen interest on further developing the in-
                                                    delegations the opportunity to tour aero-       leading universities and research centers,             Well integrated into the surrounding indus-      CIRA. The facilities now have an Icing           dustry. Innovation and industrial initiatives
                                                    space regions of interest, where we present     five leading multinationals and more than              try, many universities conduct applied re-       Wind Tunnel as well as a Plasma wind tun-        are being encouraged. “In the Basilicata
                                                    various investment opportunities and po-        400 small to medium-sized companies,                   search in conjunction with companies and         nel. They have the capacity to test for ex-      Region, geographically very close to Bari
                                                    tential scientific and commercial projects.     employing more than 10,000 people and                  participate in programs at a national and        treme temperatures and are also focusing a       in Apulia, the Italian Space Agency has its
                                                    In Europe, our activities have been focused     generating revenues of €1.8 billion.                   European level. It is no coincidence that the    strong part of their R&D work to develop-        Space Geodesy Center where Earth obser-
                                                    on fostering collaboration with other coun-                                                            director of Sapienza University’s Center for     ing composite materials. The Center was          vation data from all active EO satellites is
                                                    tries and developing research and innova-       What are the future opportunities for                  Aerospace Research, Marcello Onofri, is          supported by NASA engineers in order to          received and archived. In relation with this
                                                    tion projects for Horizon 2020. World-          the Italian aerospace industry?                        also the president of Technological National     develop the competences they have now.           activity, an agreement between the Italian
     Why was AIAD established and what              wide, we have been focusing on North and        The Italian aerospace industry is currently            Cluster for Aerospace (CTNA). CTNA is            This has allowed them to possess leading         Space Agency and the Apulia Region has
     role does it play in the promotion of the      South America, South-East Asia and some         the fourth largest in Europe and the sev-              the key organization unifying all different      technologies that attract both national and      been signed for the creation of a national
     aerospace industry in Italy?                   of the countries in the Arabian Peninsula.      enth largest in the world. Our domestic                actors within the aerospace sector, from the     international customers.                         Center for Space Data Fusion,” mentioned
     In 1947, the Federation of Aircraft Manu-                                                      industry has focused its skills on specific            various regions, large companies and SMEs,       “Equally, most of the industrial activity for    Luciano Guerriero, CEO, GAP and Profes-
     facturers (AIA) was formed by the major        What is the scope of Italy’s aerospace          technological areas where there is sig-                to academic institutions and other entities.     the International Space Station (ISS) is per-    sore Emerito, Politecnico di Bari.
     players of the time to unite the country’s     and defense sector?                             nificant international demand, which has               Because of the close relationship with local     formed in Piedmont, which has become the         Following reorganization in 2001, IMM
     aviation industry. The objective was to        Maintaining an adequate technological           served to enhance the capabilities of both             enterprises, it follows that the activities of   hub for these activities. Lombardy is the key    collected seven units across Italy. The head-
     represent, promote and protect its interests   and industrial base is a key element for        large companies and SMEs. Leonardo-                    each university and research institute will      focus area for aeronautics, although there       quarters are based in Catania, and further
     within the General Confederation of Ital-      safeguarding Italian interests internation-     Finmeccanica represents 80% of the Ital-               reflect the local capabilities and specialize    are also satellite and earth observation ac-     units are situated in Agrate Brianza (MI),
     ian Industry (Confindustria) and various       ally. In terms of defense, Italian companies    ian industry within the sector, positioning            in these specific areas accordingly. “In the     tivities,” he continued.                         Bologna, Rome, Naples and Lecce, with a
     national and international organisations.      satisfy the demands of the armed forces,        it among the top European players. Italian             Lazio region there is a concentration of all     CNR, the National Research Council, is an-       second unit in Catania. “In Lecce, for ex-
     We are now known as the Italian Indus-         enabling Italy to remain a key player in        companies now have real potential to con-              the needed technologies and capabilities for     other research institution operating at a na-    ample, the excellent relationship between
     tries Federation for Aerospace, Defense        this sector and to increase its role at an      solidate their technological expertise and             many space activities. We have industries        tional level, with the opportunity to organize   the institute and the local aerospace industry
     and Security, AIAD, and have more than         international level. Defense is indeed one      become leading companies on an interna-                and research centers working on launchers        its divisions according to the areas of excel-   has resulted in a specialization along these
     100 member companies employing 50,000          of the few areas of strategic importance        tional level. ▬                                        and satellites with both optical and radar       lence of particular regions. “From region        lines, such as in technologies with high fre-
                                                                                                                                                                                                                                                                                                            16▶
     Industry Explorations                                       ITALY AEROSPACE 2016                                            Global Business Reports   Global Business Reports                                        ITALY AEROSPACE 2016                                               Industry Explorations
ITALY AEROSPACE 2016 Civil aviation - Defense - Aerospace - Regional clusters SMEs - Knowledge exchange - Innovation - Internationalization ...
“
     FACTSHEET                                                                                                                                Global Business Reports   Global Business Reports                                                                                                                   INTERVIEW
                                                                11
                                                          TRENTINO-                 FRIULI-
                                                         ALTO ADIGE                VENEZIA-                      Our students have the opportunity
                                                                                    GIULIA
      AOSTA
                                                                                                                 to work with prominent aerospace
                                        LOMBARDIA
                                                                                                                 companies and contribute to their
                                                                                                                                                                                                                          What initiatives does the Ministry of Education support to contribute to educational
                                        10                        VENETO                                         research projects. [...] Within these
                                                                                                                                                                                                                          programs and graduate training in the country?
                                                                                                                 collaborative relationships, students
                                                                                                                                                                                                                          More than 8,000 students are enrolled in aerospace programs in Italy and universities offer
                  7                                                                                              work on real projects and challenges
                                                                                                                 otherwise handled by qualified engineers                                                                 high quality courses that pave the way for the necessary internationalization of the industry.
             PIEMONTE
                                                                                                                 within the companies. Students gain                                                                      Over the last few years, we have increased our university funding, believing that our country
                                              EMILIA-ROMAGNA
                                                                                                                 practical experience and provide solutions                                                               needs a smart and knowledge-based growth in order to compete at the best standards with
                               8                                16                                                                                                                                                        our partners and secure sustainable benefits to our citizens. Further funds have been allocated
                                                                                                                 to complex challenges with wider
                         LIGURIA
                                                                                                                 applications. This arrangement is also                                                                   to support departments dedicated to R&D. The National Research Program (2015-2020) has
                                                                                                                 beneficial to the companies in furthering                                                                identified the aerospace sector as a priority area for applied and transnational research. We in-
                                                                                                                 research capabilities, using the resources                                                               tend to fully support and consolidate our quality level, favoring a better impact on production
                                                                                                                 offered by the university.                                                                               and technology and leading the way in terms of innovation.

     “
                                                    17      TOSCANA

                                                                                       MARCHE                                                                                                                             The Ministry of Education also supports the research institutions. Could you outline the
                                                                                                                                        - Marco Gilli, Rector,                                                            funding model for research and the key institutions in Italy?

                                                                                                                                                                        Stefania
                                                                                                                                         Politecnico di Torino                                                            Italy holds a strong international technical and scientific position, thanks to public research
     The Sapienza University provides major                                UMBRIA
                                                                                                                                                                                                                          institutions, such as the Italian Space Agency (ASI), the National Research Council (CNR)

                                                                                                                                                              ”
     support to international aerospace
                                                                                                                                                                                                                          and the National Institute for Astrophysics (INAF). We provide them with more financial and
     programs, and the roots of Italy’s space
     activities can be traced back here. [...]
     We cover a large number of activities,                            LAZIO
                                                                                                  ABRUZZO
                                                                                                                                                                        Giannini                                          human resources and simplify the regulatory framework as much as possible. Our support to
                                                                                                                                                                                                                          the Italian Space Agency has grown and we are the third largest contributor to the European
                                                                                                                                                                                                                          Space Agency. Other relevant funds come from Horizon 2020.
     ranging from education and research in                                      9                                                                                                                                        In the seventh Framework Program, Italy obtained relevant funds (19% of the total). 24% of
     space to practical collaborations. When I                                 1
                                                                                 4                              MOLISE                                                                                                    this percentage is to be attributed to industrial participation (61% large enterprises and 39%
     go to the launch sites, I often find some                                 6
                                                                                 16                                                                                                                                       SMEs). At the same time Italy has a unique portfolio of strategic partnerships with all the
     of my former students at a high level of
                                                                                                                                                                                                                          relevant space agencies around the word, such as NASA, Roscosmos and the China National
     responsibility for many programs.                                                                                         APULIA                                   Minister
                                                                                                               13                                                                                                         Space Administration, which allows our scientists and industries to be well positioned in the
                                                                                                        2           CAMPANIA                       5                    MINISTRY OF EDUCATION,                            global space competition.
14                                                                                                          12                                                          UNIVERSITY AND RESEARCH                                                                                                                                      15
                 - Marcello Onofri, Director,                                                          14        15
                                                                                                                                                                                                                          What are the current target areas for space and aerospace research and developent in
         CRAS-Center for Aerospace Research,                                                                                     BASILICATA
                                                                                                                                                                                                                          Italy?
                Sapienza University of Rome
                                                                                                                                                                                                                          The use of spatial data for terrestrial applications constitutes a cultural turning point for ad-
                             SARDEGNA                                                                                                                                                                                     dressing global challenges such as climate change, environment, health, energy, transporta-

     IMPORTANT UNIVERSITIES AND RESEARCH
                                                    ”                                                                                   CALABRIA
                                                                                                                                                                                                                          tion, migration and Earth protection. They pose an extraordinary opportunity to increase qual-
                                                                                                                                                                                                                          ity of life and protect our planet, to explore the universe and increase our knowledge. The last
                                                                                                                                                                                                                          ESA report on Space Economy reminds us that the Earth Observation (EO) services market is
                                                                                                                                                                                                                          creating new opportunities, such as the emergence of big data and the digital revolution. This
     CENTERS FOR THE AEROSPACE INDUSTRY                                                                                                                                                                                   is the new Space Gold Rush which could represent a relevant volume of economic activity.

      1. CTNA
      2. CIRA
                                                                                                                                                                            “         The last ESA report on Space
                                                                                                                                                                                                                          The Ministry of Education cooperates in scientific research internationally. Could you
                                                                                                                                                                                                                          provide an example of a research program in which Italy has played a leading role?
                                                                                                                                                                                                                          Regardless of its final outcome, the ExoMars Mission has been a clear example of our po-
      3. IMM (part of CNR)                                                                                                                                                                                                tential. We participated in this mission for Mars exploration with a leading role (35% of the

                                                                                                                           “
                                                                                                                                                                               Economy reminds us that the Earth
      4. Italian Space Agency - Space Geodesy Center                                                                                                                                                                      total budget), both at a scientific and a technological level. Four principal investigators were
                                                                                                                                                                                Observation (EO) services market          Italian, three of whom were women. This experience teaches us that success can arrive both
      5. Politecnico di Bari
                                                                                                                                                                                is creating new opportunities, such       after first achievements and failed attempts. We are looking forward to a new initiative, “Open
      6. CRAS at Sapienza University of Rome                                                         SICILIA            As well as our teaching resources                         as the emergence of big data and        Universe”, proposed during the 59th session of the COPUOS. We want to build and strengthen
      7. Politecnico di Torino                                                                                        3      offered to students, we also
                                                                                                                                                                                    the digital revolution. This is the
      8. Institute of Italian Technology (IIT)                                                                                                                                                                            the capacity in the use of open source space science data and technology through international
                                                                                                                           conduct applied research and
                                                                                                                                                                                 new Space Gold Rush which could          cooperation.
      9. University of Rome Tor Vergata                                                                                 therefore collaborate with many
                                                                                                                   companies in the surrounding regions.                             represent a relevant volume of
     10. Politecnico di Milano
                                                                                                                                                                                                   economic activity.     What are the key focus areas for the Ministry of Education over the next three to five
     11. Institute for Applied Remote Sensing (EURAC)                                                       We have many contracts for projects both in
                                                                                                                                                                                                                          years?
     12. University of Naples Federico II                                                            association with ESA and the European community,
                                                                                                                                                                                                                          During the first International Space Forum, which took place in Trento in October, we stressed

                                                                                                                                                                                                                  ”
     13. University of Studi Del Sannio                                                                           and on regional and national programs.
                                                                                                                                                                                                                          the need to financially support the development and the harmonization of Space Curricula at
     14. University of Napoli Parthenope                                                                                                                                                                                  local, regional and international levels, paying the greatest attention to developing countries.
     15. University of Salerno
                                                                                                                                - Ernesto Limiti, Professor,                                                              Large challenges require strong alliances and this international commitment confirms the cen-
     16. European Centre for Space Law                                                                                     University of Rome Tor Vergata,                                                                tral role of universities and their attitude to shape global communities of knowledge. We
     17. University of Bologna                                                                                                             EE Department                                                                  should take advantage of this openness, by supporting the inception, preparation and exploita-
                                                                                                                                                                                                                          tion of space and research activities regardless of their geographical location. ▬

                                                                                                                                                              ”
     18. University of Pisa

     Industry Explorations                                                 ITALY AEROSPACE 2016                                               Global Business Reports   Global Business Reports                                         ITALY AEROSPACE 2016                                                 Industry Explorations
ITALY AEROSPACE 2016 Civil aviation - Defense - Aerospace - Regional clusters SMEs - Knowledge exchange - Innovation - Internationalization ...
EDITORIAL                                                                                                                      Global Business Reports   Global Business Reports                                                                                                               EDITORIAL

16                                                                                                                                                                                                                                                                                                                     17

                                                                                                                                                Image: IDS

     ◀ 13
     quency applications. In Apulia, Lazio and        first year students annually onto this course.   relationships that benefit both students and           programs at the university, often employing      pany specializing in electromagnetic appli-     Agency (ESA). These projects require col-
     Campania, for example, space is particular-      Many of our graduates have become very           companies. “We are lucky to have a long                graduates on their completion of the course.     cations and signals with 80% of its business    laboration between different entities to real-
     ly prominent, and this is reflected in IMM’s     prominent within leading companies, both         history of collaboration with companies in             The Politecnico di Torino offers joint cours-    conducted internationally, collaborates with    ize a full set of services, from research to
     activities in the corresponding units,” indi-    in Piedmont and throughout the country,”         the aerospace and defense sector, particu-             es designed with Thales Alenia Space, for        several Italian universities in order to up-    manufacture and testing. “By collaborating
     cated Marcelli.                                  remarked Marco Gilli, rector and professor       larly because of our proximity to a large              example.                                         hold its position as a forerunner of innova-    and complementing the capabilities of other
     Many of the universities offer specialized       of electrical engineering at the university.     concentration of them. In the Via Tiburtina                                                             tion and cutting-edge technology. “We have      institutions, we increase our critical mass
     programs and have highly respected en-           “More than 90% of our engineering students       area close by, for example, we have Leon-                                                               offices near universities in Naples, Catan-     as a region and forge an easier route to in-
     gineering departments offering excellent         find a job within a year of graduation; how-     ardo–Finmeccanica, Thales Alenia Space,                Contributions to technological                   zaro and La Spezia in order to be close to      ternationalization,” stated Marcelli. “The
     training to students. The specializations of     ever, the figure is slightly higher in aero-     Elettronica, Rheinmetall, and several oth-             development                                      different research centers,” highlighted        relationship is also mutually beneficial,
     the regional universities also tend to reflect   space engineering because the field is more      ers,” noted Ernesto Limiti, professor of the                                                            Giovanni Bardelli, IDS’ CEO. “Cooperat-         providing feedback on design for us, and
     the areas of excellence of the wider region.     technologically advanced.”                       department of electronic engineering. “We              The relationship between private enter-          ing with universities is crucial for R&D and    simultaneously contributing to the profes-
     The Sapienza University of Rome, for in-         The universities are very well respected         face very few challenges in terms of work              prises and universities is beneficial for both   finding new, effective solutions, especially    sional growth of students.”
     stance, houses CRAS, an inter-departmental       within the wider industry, and often cited       opportunities for graduates, who naturally             parties; students often have the opportunity     in a niche market like ours. Having a lot of    Italy’s universities and research institutions
     center for aerospace research. The Politec-      as a key advantage by companies in their         become enrolled in these companies. The                to learn in a practical environment or apply     offices near universities and research cen-     offer numerous advantages to companies
     nico di Torino is particularly well regarded     respective regions, providing access to          university as a whole offers 21,000 intern-            their research to real challenges, and com-      ters around the world helps us to continu-      operating across various regions, support-
     for engineering, and its Department of           a skilled and well-trained graduate pool.        ships and traineeships in Italy and abroad,            panies gain access to innovative research        ously modify and adapt our programs to our      ing training, knowledge sharing, research
     Mechanical and Aerospace Engineering is          Many of the universities have a history of       and 88% of masters graduates find work                 and skilled workers within a specialized         customers’ needs.”                              and innovation. As the capabilities and
     one of 11 departments that support 5,000         collaboration with leading companies, of         within one year of graduation,” Limiti add-            field.                                           The universities and research institutions      skills of these institutions become more
     engineering students per year. “Our aero-        which there are generally a substantial con-     ed.                                                    Collaborating with universities for R&D          are particularly involved in large-scale        widely recognized, the potential for them to
     space program is one of the most popular         centration nearby. The University of Rome        Many companies offer internships to stu-               purposes is an opportunity very much val-        projects, such as those funded by the Italian   become more involved in large-scale proj-
     among students, and we welcome about 300         Tor Vergata, for instance, has built strong      dents, and several others offer joint masters          ued by aerospace companies. IDS, a com-          Space Agency (ASI) and European Space           ects will grow. ▬

     Industry Explorations                                          ITALY AEROSPACE 2016                                            Global Business Reports   Global Business Reports                                       ITALY AEROSPACE 2016                                               Industry Explorations
ITALY AEROSPACE 2016 Civil aviation - Defense - Aerospace - Regional clusters SMEs - Knowledge exchange - Innovation - Internationalization ...
COMPANY PROFILE                                                                                                                                               Global Business Reports   Global Business Reports                                                                                                                INTERVIEW

           LEONARDO                                                                                                                                                                                                           Mauro
                                                                                                                                                                                                                                                                                                      and universities. Our approach is to iden-
                                                                                                                                                                                                                                                                                                      tify, acquire and rapidly and effectively
                                                                                                                                                                                                                                                                                                      consolidate cutting-edge technologies
                                                                                                                                                                                                                                                                                                      across the division’s businesses, and apply

      8˚                           12˚               16˚
                                                                                                                                                                                                                              Moretti                                                                 these to the needs and requirements of the
                                                                                                                                                                                                                                                                                                      market.
                                                                                                                                                                                                                                                                                                      We believe that a key area of focus for
                                                                                                                                                                                                                                                                                                      the aerospace and defense sector going
                                                                                                                                                                                                                                                                                                      forward will be unmanned systems, and
                                                                                                                                                                                                                                                                                                      an increase in their autonomy and perfor-
                                                                                                                                                                                                                             CEO and General Manager                                                  mance. We are also investing further in the
                                                                                                                                                                                                                                                                                                      helicopter domain, developing the next
                                                                       company size
                                                                     44˚                                                                                                                                                                                                                              generation civil tilt rotor, which seeks to

                                                                       47,156                                                                                                                                                                                                                         answer growing demand for substantially
                                                                                                                                                                                                                                                                                                      higher speed, range and comfort, and ca-
                                                                                                                                                                                                                                                                                                      pable of generating an additional rotorcraft
                                                                           EMPLOYEES
                                                                                                                                             There have been many changes to the                   How do you balance the commercial in-               and offered at an appropriate price. This      market, both commercial and governmen-
                                                                                                                                             company since you became CEO in                       terest of your investors with the strate-           assists our growth and, in turn, we are able   tal. Within aeronautics, trainers are anoth-
                                                                       revenue (2015)                                                        2014. Could you provide us with an                    gic interests of the government?                    to provide them with more business. The        er leading product family for Leonardo,
                                                                                                                                             overview of these developments and the                                                                    objective, therefore, is to support sustain-
                                                                       12.9
                                                                                                                                                                                                   Just over 30% of Leonardo’s shares are                                                             and we aim to grow our market presence.
                                                                     40˚
                                                                                                                                             company’s new vision?                                 held by the Ministry of Economy and Fi-             able growth for companies across the sup-      Another focus area will be the security and
                                                                                                                                             Focusing on the key capabilities of the               nance, and 50% by institutional investors.          ply chain.                                     defense electronics sector, with key invest-
                                                                           BILLION EUROS
                                                                                                                                             business, we have aimed to promote cohe-              There is however no conflict between the                                                           ments in the radar domain, including the
                                                                                                                                             sion and efficiency in our operations. The            interests of the Italian Government and the                                                        development of AESA (Active Electroni-
                                                                                                                                             first step taken was a restructuring of the           interests of the institutional investors as                                                        cally Scanned Array) radars and in the four

                                                                                                                                                                                                                                                       “
                                                                                                                                             company and reorganization around the                 decisions are made by the corporate gov-                                                           fixed-face Multi-Functional Radar (X and
     18    HEADQUARTERS                                                key aerospace customers                                               aerospace, defense and security activities.           ernance system in place in Leonardo and                                                            C band). We will also continue to lever-               19
                                                                                                                                             Moving away from the holding structure                aimed at creating value for shareholders.                                                          age our unique experience and services
                                                                       65%
           LOCATION
           ROME                                                      36˚
                                                                                                                                             of the business, our second step was to               Additionally, as exemplified by the order                                                          acquired through the Space Alliance and
                                                                                                                                             arrive at a new business model, with just             for the Eurofighter Typhoon aircraft from                                                          national and international government in-
                                                                           MILITARY
                                                                                                                                             one integrated and consolidated company,              Kuwait, the Italian Government is fully                                                            stitutions to develop our space capabilities.
8˚                           12˚                           16˚

                                                                       35%                                                                   rather than a network of independent com-
                                                                                                                                             panies operating in different sectors.
                                                                                                                                                                                                   supportive of our business. As a matter of
                                                                                                                                                                                                   fact, the contract with Kuwait was signed
                                                                                                                                                                                                                                                         A large company like Leonardo can
                                                                                                                                                                                                                                                        be a huge support to the growth of a          As an Italian company looking to inter-
                                                                           CIVIL                                                             This new operating model is based around              following a specific G to G between the              country’s industry if it has a balanced       nationalize, what are Leonardo’s key
                                                                                                                                             four major business sectors, organized                Italian Government and the Government                   and healthy relationship with its          objectives over the next four years?
                                                                                                                                             across seven operational divisions. These             of Kuwait.                                            suppliers. If SMEs work for just one         Italy has strong capabilities across aero-
                                                                                                                                             divisions are now coherent and consistent                                                                 customer, it is not beneficial for either      space and defense. We will see a continued
                                         key products and services     company type                                                          in terms of technology, capabilities and              What is the motivation behind the cap                                 party.                       and increasing pesence at the leading edge
                                                                                                                                             customers, and each has a specific focus.             on the business your suppliers can con-                                                            of innovation. Investment in R&D and in-
             CIVIL AND MILITARY HELICOPTERS                            OEM System Integrator                                                 They are also supported centrally at a cor-           duct with the company?
            AND AIRCRAFT, AEROSTRUCTURES,                                                                                                                                                                                                                                                             novation will be key to staying ahead and
               UNMANNED SYSTEMS, DEFENSE
                                                                           AND COMPONENTS FOR FIXED                                          porate level, sharing processes across func-          The idea behind restricting the percentage                                                         providing unique solutions and products
                                                                           WING AND ROTARY WING AIRCRAFT,                                    tions such as marketing, strategy, commu-             of overall output that companies may sup-                                                          that will meet customer requirements. As a
                  AND SECURITY ELECTRONICS
                                                                                                                                             nications, legal and HR. The provision of             ply to Leonardo at 70%–75% is to encour-                                                           player in the Italian aerospace and defense

                                                                                                                                                                                                                                                                                              ”
                                                                           ELECTRONICS SYSTEMS,
                  (AVIONICS, LAND AND NAVAL
                                                                           SPACE SYSTEMS                                                     a single interface helps us to implement              age competition within the market. A large                                                         industry, we will continue to offer our ca-
               RADARS, MILITARY AND SECURE
                                                                                                                                             best practices and streamline operations.             company like Leonardo can be a huge sup-                                                           pabilities, investment, heritage and exper-
              COMMUNICATIONS, AIR TRAFFIC                                                                                                    This, of course, benefits the customer and            port to the growth of a country’s industry if                                                      tise. One of the main aims of Leonardo’s
             CONTROL AND MANAGEMENT, ICT                                                                                                     also gives us a single voice, allowing us             it has a balanced and healthy relationship                                                         new vision is to grow internationally. We
            AND SECURITY); TORPEDOS, NAVAL                             key industries                                                        to leverage our position as a large corpo-            with its suppliers. If SMEs work for just                                                          want to improve our international opera-
            GUNS, MISSILE SYSTEMS, SATELLITE
              MANUFACTURING AND SATELLITE                              100%                                                                  ration when building relationships with
                                                                                                                                             customers, partners and other companies.
                                                                                                                                             The change from Finmeccanica to Leon-
                                                                                                                                                                                                   one customer, it is not beneficial for either
                                                                                                                                                                                                   party. A fully or mostly dependent supplier
                                                                                                                                                                                                   would have no stimulus to develop or take
                                                                                                                                                                                                                                                       Where are you focusing your R&D in-
                                                                                                                                                                                                                                                       vestment, and what are your plans for
                                                                                                                                                                                                                                                       future growth?
                                                                                                                                                                                                                                                                                                      tions and offer a complete and integrated
                                                                                                                                                                                                                                                                                                      service.
                                                                                                                                                                                                                                                                                                      We will also continue to focus more nar-
                                   SERVICES                                AEROSPACE & DEFENSE
                                                                                                                                             ardo communicates our shift in focus and              in new practices and the company would              We invest a significant amount in R&D,         rowly on those areas in which we could
                                                                                                                                             business culture. Taken from Leonardo Da              therefore have no opportunity to grow or            approximately 11% of our revenues (more        become world leaders. We plan to achieve
                                                                                                                                             Vinci, the name to us exemplifies the roots           diversify their activities. If, on the other        than €1.4 billion in 2015), and we receive     this through investments and growth, and
                                                                           NOTE: Data and activities are referred to Leonardo Group – in     of disruptive innovation. We consider our-            hand, our suppliers are competing in in-            a large amount of national funding. Most       consolidating our presence in those areas
                                                                           2015 Transportation activities are no more consolidated. From
                                                                           2014 the Group DATA no longer include the contribution given      selves proponents of similar qualities, and           ternational markets, we know that their             of our projects are based on cooperation       where we want to be stronger and increase
                                                                            by the JVs (Telespazio, Thales Alenia Space (Space activities)
                                                                                   MBDA (Missile systems), ATR (regional aircraft)
                                                                                                                                             the name epitomizes our new vision.                   products and services are of high quality           and collaboration with research centers        our volumes. ▬

           Industry Explorations                                                               ITALY AEROSPACE 2016                                                      Global Business Reports   Global Business Reports                                          ITALY AEROSPACE 2016                                             Industry Explorations
COMPANY PROFILE                                                                                                    Global Business Reports   Global Business Reports                                                                                           EDITORIAL

     CETMA                                                                                                                                                                     Uniting the Front
                                                                                                                 Luigi
     HEADQUARTERS LOCATION                      key industries
                                                                                                                Barone                                                         Spotlight on the key aerospace districts

                                                  25%
     Brindisi

     company size                               AEROSPACE
                                                                                                                                     CEO

     90
     EMPLOYEES                                    25%
                                        TRANSPORTATION

                                                 50%
     company type
                                                                    Could you describe the goals that you had when the company
     R&D,                                                           started?
     INDUSTRIAL ENGINEERING                OTHER SECTORS
                                                                    CETMA was born out of ANEA as a research and a technologi-
                                                                    cal organization. The aim was to promote innovation in the south
                                                                    of Italy, for which a technical structure was created, including an
     key aerospace customers         key products and services      office for research and a development lab. We built up a team of

     95%
                                                                    people who were experienced in research management. We have
                                             COMPOSITES
                                                                    two main activities, the first is to carry out research, and in doing
                                     DESIGN AND ANALYSIS
     COMMERCIAL
                                                                    so create knowledge, however we are also a technological cen-
                                 PROCESSES AND FORMING
                                                                    ter because the knowledge and skills created by the research are                                           Italy has 11 aerospace districts, with Campania, Lazio, Lombardy, Piedmont, Apulia and
     AVIATION                  TESTING AND CERTIFICATION
20                                                                  transferred to our customers.                                                                              Umbria widely deemed the six most important. The remainder are Basilicata, Emilia Ro-                   21
                                                                                                                                                                               magna, Liguria, Sardinia and Tuscany. With differing competences and areas of excel-
                                                                    What is CETMA's geographical scope?                                                                        lence, it is impossible to select one district as the leader across all fields. “Although Va-
                                                                    In terms of research and development we are able to give ser-                                              rese in Lombardy has earned the nickname ‘the winged province’ due to the presence of
                                                                    vices to customers across Italy. We have researchers operating in                                          important companies in the history of the Italian Air Force, I do not believe it is possible
                                                                    many fields but most of our work is focused on the aerospace in-                                           to determine one leading aerospace district,” underlined Guido Crosetto, president of the
                                                                    dustry. Our operations are concentrated in our site in Apulia. We                                          Federation of Italian Companies for Aerospace, Defense and Security (AIAD).
                                                                    work with composite materials in the aeronautical sector, but our                                          Though there is vast competition amongst the six regions, they all have different special-
                                                                    knowledge in this segment is transferrable. Indeed, we plan on                                             ties. Campania and Apulia have a strong manufacturing segment, where composite mate-
                                                                    opening a new site in northern Italy.                                                                      rials are being developed and there is a focus on civil aircraft. Lazio leans further towards
                                                                                                                                                                               the military and defense products. Whereas Lombardy and Piedmont are considered the
                                                                    How is virtual reality (VR) translating into new developments                                              wealthier regions and both have strengths in space, helicopters and military aircraft.
                                                                    for CETMA?                                                                                                 According to Ernesto Limiti, Professor at the University of Rome Tor Vergata’s elec-
                                                                    We have been working with virtual reality for 10 to 15 years. We                                           tronic engineering department, Lazio, and specifically Rome, has the largest concentra-
                                                                    have developed software to interact with virtual reality and have                                          tion of aerospace and defense companies, closely followed by Piedmont. Limiti attributes
                                                                    created design software in order to use VR as a kind of computer                                           Piedmont’s prominence in part to the presence of Thales Alenia Space, and also to the
                                                                    aided design (CAD). We have also developed an application for                                              Politecnico di Torino and Institute of Italian Technology (IIT). “Italy has a long history
                                                                    augmented reality. The more realistic the system is, the better it                                         in the aerospace sector; we are probably the pioneers of space within Europe. We have
                                                                    becomes for maintenance training, but the main usage of VR in                                              a number of prominent medium to large-sized companies at the forefront of innovation
                                                                    this field lies in manufacturing. Augmented reality is a technology                                        and, additionally, all the surrounding SMEs that work for them and are very important for
                                                                    that merges the real environment with informative virtual reality.                                         the national industry. There is a good network of specific competences that are not readily
                                                                                                                                                                               available elsewhere,” Limiti asserted.
                                                                    Where would you like to see CETMA in three years time?                                                     It is the responsibility of the Italian Cluster for Aerospace Technology (CTNA) to coordi-
                                                                    We are evolving from being a research center to becoming a tech-                                           nate the activities across the 11 districts at a national level across private enterprises and
                                                                    nological provider. We are thinking to invest in providing not only                                        public institutions. “Because of the specific nature of the aerospace industry, the activities
                                                                    knowledge but also devices for our customers. For example we                                               are typically very technologically advanced, and it is thus essential to connect research
                                                                    are now owners of an important European patent concerning the                                              institutions and enterprises to pool knowledge and integrate capabilities,” explained CT-
                                                                    welding of thermoplastic composite materials. It is important to                                           NA’s president, Marcello Onofri. “We create a production chain from the design and
                                                                    remember that we are a non-profit enterprise and that all the profit                                       research stages through to manufacturing, incorporating universities, research centers and
                                                                    generated is used to finance our research activities according to                                          SMEs, for example. At the moment, all cluster activities are government-driven, but there
                                                                    the non-profit structure. ▬                                                                                is no doubt that we will begin to operate commercially", added Onofri. ▬
                                                                                                                                                  Image courtesy of Leonardo

     Industry Explorations                             ITALY AEROSPACE 2016                                             Global Business Reports   Global Business Reports                    ITALY AEROSPACE 2016                                              Industry Explorations
FACTSHEET                                                                                                                   Global Business Reports   Global Business Reports                                                                                                                  INTERVIEW

                                                                                                      “
                                                                                                                                                                                                           IPTSAT was established in 1987. Could              through which you can select your location
                                                                                                                                                                                                           you provide us with a brief history of the         and find out about local regulations for fly-
                                                                                                                                                                                                           company?                                           ing drones, without having to download and
                                                                                                                   In the Lazio region there is a                                                          IPTSAT’s original operations were in the           scour huge files. Within five months we had
                                                                                                               concentration of all the needed                                                             field of Geographic Information Systems            received 500 website subscriptions and, two
                                                                                                        technologies and capabilities for many                                                             (GIS) to help the government monitor and           years later, we have more than 2,000 sub-
                                                                                                       space activities. We have industries and                                                            control changes affecting urban centers and        scribers. We currently receive on average 40
                                                                                                                                                                                                           the environment. Remote sensing technol-           new subscriptions every month.
                                                                                                        research centers working on launchers
                                                                                                                                                                                                           ogy at this time was in its very early stages
                                                                                                      and satellites with both optical and radar
                                                                                                                                                                                                           with NASA only just beginning to deploy            How important is the international mar-
                                                                                                       technologies, making Lazio a key region                                                             its first tracking and data relay satellites.      ket to your business?
                                                                                                        for innovation and the development of                                                              A short while later, we began to support           Currently only 5% to 6% percent of our
                                                                                                                        the Italian space sector.                                                          public institutions, the government and the        total revenue derives from our customers
                                                                                                                                                                                                           military in better understanding territories       outside Italy. We began selling our services

                                                                                                                                                           Valerio
                                                                                                                                                                                                           through our earth observation technologies.        across Europe two years ago thanks to an
                                                                                                                        - Marcello Onofri,                                                                 To do this, we put most of our energy into         agricultural project under the framework
                                                                                                                                                                                                           transforming raw data into usable informa-         of Horizon 2020, a European Union instru-

                                                                                                                                                           Caroselli
                                                                                                                                  Director,
                                                                                                      CRAS-Center for Aerospace Research,                                                                  tion, which continues to be the underlying         ment dedicated to innovation in SMEs. For
                                                                                                          Sapienza University of Rome and                                                                  characteristic of our company today. Today         a small company like ours composed of
                                                                                                                       president of CTNA.                                                                  we are able to use satellites to observe vast      ten people, it is extremely challenging to
                                                                                                                                                                                                           territories and analyze a wide array of fac-       compete with other companies in Europe,
                                                                                                                                                                                                           tors and areas including the level of air, wa-     particularly German and French compa-

     LAZIO                                                                                                                                       ”
                                                              VITERBO                                                                                                                                      ter and land pollution, chlorophyll synthesis      nies. Collaborating with both national and
                                                                                                                                                                                                           of trees in forests, and even illegal activities   international associations like the Institute
                                                                                 RIETI
                                                                                                                                                           President                                       such as unlawful building construction.            for Applied Remote Sensing (EURAC),
     Capital: Rome
     President: Nicola Zingaretti                                          ROME                                                                            LAZIO CONNECT                                                                                      European Association of Remote Sensing
22   Area: 17,203 km2
                                                                        Rome                                                                               ASSOCIATION                                     Could you give us some insight into your           Companies (EARSC) and Lazio Connect is                   23
     Population: 5.9 million
     Value of exports (2015): €20.2 billion                                                                                                                General Manager                                 customer relationships?                            crucial for us in terms of visibility, reference
                                                                                          FROSINONE
     GDP (2012): €169.5 billion                                                                                                                            IPTSAT                                          About 50% of our business comes from               and support in our work.
                                                                                   LATINA                                                                                                                  public tenders, with European, national gov-       We are particularly happy to work with
                                                                                                                                                                                                           ernment and public administration entities         Lazio Connect, for which I am the acting
                                                                                                                                                                                                           making up our largest customer base. We            President, which connects us with 42 other
                                                   AEROSPACE                                                                                                                                               also have contracts with research centers,         members from universities, research cen-
                                                                                                                                                                                                           accounting for 10% to 15% of our business,         ters, and SMEs of the Lazio region. In Italy,
                                                                                                                                                                                                           usually requesting satellite data and maps or      all regions have different capabilities and

                                               250                                                                                                                                                         contracting us to help them understand data        use diverse models to define a cluster. By

                                                                                                                                                               “
                                                                                                                                                                                                           and transform it into simple, digestible in-       utilizing our extensive network, we are able
                                              COMPANIES                                                                                                                                                    formation. The remaining to 35% to 40% of          to identify the relevant expertise within the
                                                                                                                                                                                                           our customers is in the private sector.            cluster and relay the information back to the

                                                           €5 billion
                                                                                                                                                                                                                                                              customer. By helping each other we create
                                                                                                                                                                     The space sector and in particular
                                                                                                                                                                                                           What is the purpose of the project to map          a win-win situation for everyone involved.
                                                                                                                                                                 remote sensing will be our key focus
                                                                                                                                                                                                           fly zones for UAVs?
                                                           + TURNOVER                                                                                               for the future. With the growth of     Two years ago we began mapping ‘no-fly             How do you plan to utilize these opportu-
                                                    5                                                                                                              constellations such as Copernicus,
                                                                                                                                                                       it is necessary to transform the
                                                                                                                                                                                                           zones’ in Italy, specifically for Unmanned
                                                                                                                                                                                                           Aerial Vehicles (UAVs). Although not as
                                                                                                                                                                                                                                                              nities to support IPTSAT’s growth?
                                                                                                                                                                                                                                                              The space sector and in particular remote
                                         UNIVERSITIES                                                                                                              increasing amount of raw data into      popular in Italy as in the USA or France,          sensing will be our key focus for the fu-

                                                           30,000
                                                                                                                                                                    useful and accessible information.     UAVs are nonetheless a growing market.             ture. With the growth of constellations such
                                                                                                                                                                 We will also focus on the agricultural    Their use is heavily regulated due to con-         as Copernicus, it is necessary to transform
                                                                                                                                                                       sector, which is growing rapidly.   cerns over public safety, and they are not         the increasing amount of raw data into use-

                                                  10
                                                           EMPLOYEES                                                                                                                                       permitted to fly over particular areas, such       ful and accessible information. We will also
                                                                                                                                                                                                           as the Colosseum in Rome, for example.             focus on the agricultural sector, which is

                                                                                                                                                                                                   ”
                                                                                                                                                                                                           Often unaware of these regulations, citizens       growing rapidly. As a result of dramatic pop-
                                  RESEARCH BODIES                                                                                                                                                          are regularly subjected to fines. For this         ulation growth, it is essential to find ways to
                                   ASI, CNR, ENEA, CSM,                                                                                                                                                    reason, we decided to turn the complicated         maximize production using the same amount
                                        ESA/ESRIN, INFN,
                                    INAF, INGV, CAA, RSV                                                                                                                                                   rules into easily graspable and accessible in-     of space. Our technologies and solutions can
                                                                                                                                                                                                           formation. We were able to transform static        support these goals and, furthermore, reduce
                                                                                                                                                                                                           information into an interactive platform           the use of pesticides and water. ▬

     Industry Explorations                                              ITALY AEROSPACE 2016                                     Global Business Reports   Global Business Reports                                       ITALY AEROSPACE 2016                                                  Industry Explorations
You can also read