Saudi Arabia’s Public Investment Fund (PIF) is holding talks about investing in the aerostructures unit of Italian defence company Leonardo, a news report said.
The talks are at an early stage with no agreement guaranteed, Bloomberg reported.
The investment could lead to the Italian company building a civil aviation manufacturing plant in Saudi Arabia, the news agency said.
PIF officials visited Leonardo’s facilities in southern Italy this week, the report said. Leonardo is 30 percent owned by the Italian government.
The unit manufactures major structural parts for Boeing’s 787 Dreamliner but has faced losses due to a slowdown in US production.
Leonardo designs and produces 14 percent of the Boeing 787 Dreamliner, the world’s first airliner to make large-scale use of composite materials, according to the company’s website.
The unit reported revenues of €746 million ($784 million) in 2024, the news agency said.
If agreed, the deal could also help Saudi Arabia participate in a next-generation fighter jet project with Italy and the UK.
Leonardo’s CEO Roberto Cingolani is due to share more details about a potential investor on March 11.
Italian Prime Minister Giorgia Meloni met Crown Prince Mohammed bin Salman in late January, signing investment deals worth $10 billion.
In 2022 PIF-owned defence group Sami signed a preliminary agreement with Boeing to boost military manufacturing in Saudi Arabia.
A new joint venture company will provide maintenance and overhaul services for military rotary fleets operated in the kingdom.
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