Fincantieri Sues Owens Corning For $100 Million Over Defective Fire Panels On Ships

Cruise ship — Image for representation purposes only

Fincantieri, an Italian shipbuilder, has filed a US$100 million lawsuit against Owens Corning and its subsidiary, the Paroc Group, claiming the companies supplied faulty fire insulation panels that were fitted on three cruise ships and eight military vessels.

The case was filed in the U.S. District Court in Ohio, where Owens Corning is headquartered. Fincantieri alleges that Paroc Group, which Owens Corning acquired in 2018, obtained fire safety certificates by submitting altered materials for testing. The shipbuilder accuses the company of fraud, misrepresentation, and putting lives at risk by selling non-compliant products.

The insulation in question came from Paroc’s “Navis” line, a stonewool product marketed as a lightweight, fire-safe solution for steel decks and bulkheads on ships.

Fincantieri and its subcontractors began using the panels in 2019 for both cruise and military vessels, relying on assurances that the product met the Class A-60 fire integrity standard under international SOLAS rules.

The A-60 standard is the highest rating for marine fire insulation, designed to prevent heat transfer for at least 60 minutes and protect bulkheads in areas like galleys.

In 2023, a competitor of Paroc tested the Navis panels and found they did not meet the A-60 fire safety requirements. The Danish Institute of Fire and Security Technology later confirmed these findings in April 2023 through independent testing.

According to Fincantieri’s complaint, this proved that the certification process had been manipulated, with falsified testing materials used to obtain approval.

The defective products were recalled in May 2023, but Fincantieri says Paroc did not provide any advice or instructions for remedial actions on vessels already fitted with the panels. The Navis line was fully discontinued on May 31, 2024.

Fincantieri identified 11 ships affected by the defective panels. This includes the Discovery Princess, delivered in 2022 to Carnival Corporation’s Princess Cruises, and two luxury cruise ships for MSC’s Explora Journeys, Explora I and Explora II, delivered in 2023 and 2024.

The delivery of Explora I was postponed for 21 days, while Explora II and Carnival’s Sun Princess, still under construction, also faced delays for panel replacements. Eight military vessels, including two still being built, were also impacted.

The lawsuit states that Owens Corning showed “malicious, reckless, and grossly negligent disregard” for safety, ignoring the risk of catastrophic injury to potentially thousands of people aboard vessels using the panels.

Fincantieri says it has suffered more than $100 million in damages. The costs include investigations, repairs, and replacements on the affected ships, as well as higher construction expenses, liquidated damages, and other penalties linked to delayed deliveries. The shipbuilder also cited reputational harm.

Owens Corning, which has until September 19, 2025, to respond, acknowledged that it is aware of the lawsuit but has not issued a public comment. The company was previously involved in decades of litigation over asbestos used in shipbuilding materials, which ultimately led to a bankruptcy filing and settlement in 2000.

Reference: ship-technology

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