Italian shipbuilder Fincantieri is reportedly taking legal action against a US-based supplier, claiming more than $100m in damages due to "fraudulently" certified fire insulation panels supplied for its ships, according to court documents.
The lawsuit, filed last month in Ohio, alleges that Owens Corning's subsidiary Paroc sold products that were misrepresented and posed a safety risk, affecting several ships.
Fincantieri was compelled to suspend ship deliveries following the recall of faulty panels by Owens Corning and Paroc "to prevent potentially serious injury or death resulting from the sale and use of a defective and unsafe line of stone wool insulation products."
The issue came to light when the launch of MSC's Explora I was delayed due to a safety hazard. The delivery, initially scheduled for 29 June 2023, was postponed by 21 days, with subsequent ships also facing postponements.
The faulty panels, which were supposed to provide 60 minutes of fire resistance as per EU law, were found to be non-compliant following a retest.
Fincantieri's complaint details that Paroc, supported by Owens Corning, obtained initial safety certifications through fraudulent means.
The Danish maritime authorities' tests in 2023 revealed that the panels could only withstand flames for 45 minutes, leading to the loss of certifications.
The ramifications for Fincantieri extended to another ten ships, including military vessels, some of which were already operational.
The shipbuilder also noted that Owens Corning failed to provide guidance on rectifying the issue for ships already in service, despite an independent risk assessment indicating a “high risk for safety on board the ships.”
The necessary replacements have resulted in penalties and further financial losses, according to the complaint.
Fincantieri's complaint also highlights the extensive economic damages and the severe impact on its industry reputation due to the product recall.
Fincantieri was quoted as saying in the complaint: “In addition to causing over $100m in economic damages, the product safety recall has caused Fincantieri to bear the brunt of considerable harm to its reputation and goodwill in the industry making headlines in the Financial Times and elsewhere after launches of new cruise ships that had already been booked [by customers] had to be delayed.”
While Fincantieri has declined to comment on the ongoing case, Owens Corning acknowledged the legal proceedings involving Paroc but refrained from commenting on the pending litigation.
