Sviluppo Italia, investments company for the Italian government, has purchased 20 per cent of Piaggio Aero Industries. Piaggio’s new capital will become over 80 million euros, 15 times the 10 billion lira that constituted the company capital when in 1998 Piaggio was bought out by its present shareholders.

A spokesperson said: “The capital increase has been finalised to pursue Piaggio Aero Industries’ growth plans to increment the production lines and develop new activities.”

The company says that the increase in its volume of orders (up to 8 in Europe and 14 in the US) justifies the company’s strengthening strategy. “On the US market, Piaggio’s share has increased from three per cent in 2000 and is expected to reach 20 per cent by the end of 2003,” said the spokesperson.

Piero Ferrari commented: “Sviluppo Italia becoming a new partner will allow Piaggio Aero Industries to continue strongly along the growth path. This deal plays an important role, not only for its financial implications, but also for the industrial development - helping us to improve and strengthen our production structures.

“We plan to implement new production lines, which will minimise aircraft delivery times and and make us more competitive in

the market.”

Sviluppo Italia general manager Massimo Caputi added: “As the national agency for the development of enterprises, Sviluppo Italia has made this move in order to further achieve, together with Piaggio’s other shareholders, company growth and in particular employment growth, in view of Piaggio Aero’s plans for

new factories.”