Italian shipbuilder Orizzonte Sistemi Navali and DCNS of France have announced the construction of combat vessels for the navies of Italy and Egypt.

Orizzonte Sistemi Navali S.p.A. said that OCCAR, the European Union agency in charge of multinational weapons procurement projects, had notified them that the Italian Navy was exercising a contract option to obtain two FREMM frigates.

The frigates would be the ninth and tenth for Italy under the Italian-French FREMM, or Multi Mission European Frigates, program. The value of the option exercise carries a value of about $818.1 million.

"Considering the effort which the Italian State is doing, we expect that our workers and those of all the companies which benefit from these orders will endeavor to achieve efficiency levels which will allow to reduce the price of the product, in the interest of the entire country," said Giuseppe Bono, Fincantieri chief executive officer.

Fincatieri and Finmeccanica are co-owners of Orizzonte Sistemi Navali, which is Italy's prime contractor for the FREMM program.

FREMM frigates of the Italian Navy are 474 feet long, 65 feet in the beam and have a speed of more than 27 knots. Sailing at a speed of 15 knots they have a range of 7,600 miles.

The new frigates will be delivered to the Italian Navy after 2020.

"The Italian and French program for the new FREMM European Multi Mission Frigates is the most important European military naval programme ever implemented," said Finmeccanica Chief Executive Officer and General Manager Mauro Moretti. "The vessel-based systems produced by Finmeccanica are capable of managing a range of continuously developing operational scenarios with cutting edge technology."

In France, DCNA reported it had cut steel Wednesday at a shipyard in Lorient for the first of four Gowind-class 2500 corvettes for Egypt under a contract signed last summer.

The ship will be 335 feet long, have a speed of 25 knots and a range of 4,000 miles sailing at 15 knots per hour.

"The start of production of the future Egyptian Gowind 2500 corvette underlines DCNS's industrial capacity to manage and realize major programs in France," DCNS said. "Currently, DCNS is simultaneously building (at Lorient) five FREMM frigates for the French Navy and the Gowind corvette for the Egyptian Navy. DCNS teams are also preparing the delivery of the currently so-called FREMM Normandie, for Egypt."

The corvette under construction is expected to occur in 2017.

Under a technology transfer provision of the contract with Egypt, the remaining three Gowind 2500 corvettes are to be built in Alexandria, Egypt.

"Over the last year DCNS has established strategic relations with Egypt in the frame of the modernization of the country's surface fleet," DCNS said. "The sale of a FREMM multi-mission frigate in February 2015 and four Gowind 2500 corvettes in July 2014 are a demonstration of the trust placed in the Group.

"DCNS is pursuing a long-term partnership with the Egyptian Navy and Egyptian industry."

DCNS is the principal contractor for the FREMM program in France and a prime provider of naval services. Under a new contract from the French Navy it is providing through-life support services for six nuclear attack submarines of the French Navy.

The award is for the maintenance of six Rubis-type submarines. It also provides for preliminary servicing of the first-of-class Barracuda submarine, the Suffren, which is being commissioned in 2018.

Also included in the award are provisions for the maintenance of infrastructures related to the servicing of Rubis-type nuclear attack submarines and the future installations in the process of adaptation for the routine servicing of the first Barracuda nuclear attack submarines.