Italian defence industry - Outside success

The economic growth of the Italian defense industry in the year 2006, is discussed. It is reported that Finmeccanica has significantly increased its share in the defense electronics sector and small-and-medium sized privately held companies are most affected by defense cuts. The company plans to create a center of excellence by integrating Datamat and Elsag, another Finmeccanica company specializing in IT and systems integration. The company hopes that the successes gained in the Persian Gulf Area, such as the Baynunah covette programme in the UAE, together with the creation of joint ventures with local industries, will lead to further penetration of the region's market. The company's Alenia Aeronautica leads the Italian aeronautics fixed-wing sector as it controls all the shares of Aermacchi and Officine Aeronavali.