Fincantieri Sues Owens Corning for $100M Over Defective Fire Panels

Italian shipbuilder Fincantieri has initiated a lawsuit in an Ohio court against US-based supplier Owens Corning and its subsidiary Paroc, demanding over $100 million in damages. The legal action arises from the supply of fire-resistant insulation panels that were allegedly certified fraudulently, compromising the safety of multiple ships. These panels, mandated to provide 60 minutes of fire resistance under EU regulations, were found deficient during a 2023 retest by Danish maritime authorities, lasting only 45 minutes, which led to the revocation of their certifications.

The issue first surfaced with the delayed launch of the MSC Explora I cruise ship, postponed by 21 days from its original date of June 29, 2023, due to identified safety hazards. The defect extended to ten additional vessels, including military ships, some of which were already operational. To mitigate risks of injury or loss of life, Fincantieri was forced to suspend deliveries, triggering significant financial repercussions, including penalties and costs for panel replacements. The company also suffered considerable reputational harm, highlighted by coverage in major publications like the Financial Times, which reported on the delays of pre-booked cruise ship launches.

Further complicating matters, Owens Corning has not provided guidance to address the issue on ships currently in service, despite an independent risk assessment flagging a “high risk for safety.” Fincantieri emphasized the economic toll and industry-wide reputational damage caused by the product recall. While Fincantieri has refrained from commenting on the ongoing case, Owens Corning has acknowledged the litigation but declined to elaborate.