The Government relaunches the international deployment of Navantia in full swing of defense spending

Navantia, the State-owned company that is in charge of managing the centenary Spanish public shipyards, has decided to step on the accelerator of its international deployment given the expectation of growth in defense investments that has followed the conflict in Ukraine. On June 15, the state company dedicated to the construction of military ships activated the bureaucratic procedures for the constitution of two new subsidiaries in Saudi Arabia and the United Kingdom, as ABC has been able to confirm in official sources, which will join a network that It already has an operating subsidiary in Australia and another without activity in Brazil, and continues to work on opening a new office in Miami to enter the North American market. The movement seeks to squeeze the business possibilities of the company in those two countries. Navantia has become the leading industrial partner in terms of naval manufacturing for the Saudi Army, with which it set up a joint-venture in 2018 for the development of the construction program for five corvettes, which is expected to leave it in box about 900 million in the coming years. MORE INFORMATION Navantia delivers the second corvette built in the Bay of Cadiz to the Royal Saudi Arabian Navy After the disagreement created by the episode of the attempted suspension by the Defense Minister, Margarita Robles, of a contract for the sale of bombs to Saudi Arabia in 2018, which was about to put an end to the contract for the manufacture of the corvettes, the industrial collaboration –which includes the transfer of knowledge from the Spanish naval industry to the Saudi– has been consolidated and, according to Navantia, admits in its In the last annual report, not only are new business development opportunities being assessed, but this joint venture has opened up new possibilities for Navantia in the Middle East market. The constitution of a subsidiary in Saudi Arabia responds, in the words of the company, to the potential "development of localization projects with Saudi companies in support of the Vision 2030 Plan", whose objective is the development of its own military industry. Going for the Anglo-Saxon market The decision to establish a subsidiary in the United Kingdom is also strategic for Navantia. The public company aspires to consolidate a strong position in the British market at the gates of the reactivation of the FSS program, paralyzed during the pandemic and which provides for the construction of three large solid cargo ships. Navantia has forged relationships with companies in the local shipbuilding industry to try to improve its chances of success. The British market is also interested in another line of business that predicts an increasingly important development: the construction of elements for offshore wind infrastructure, highly developed in the islands. 667 million International business This was the turnover that Navantia obtained in the 2021 financial year from its business outside of Spain. Navantia has a presence in twenty countries and more than half of its turnover rests on its international business. According to the 2021 accounts, the company had a turnover of 638 million euros in Spain and 667 million abroad. Figures that were not enough to prevent the public shipyards from closing the year with red numbers of 93 million euros. Fight against the red numbers Navantia manages an order book of more than 7,000 million euros, mostly linked to the Spanish Navy, but its long-term financial sustainability largely depends on its ability to consolidate itself as a major player in the international scene. In recent years, the State has injected 1,624 million euros in participating loans in Navantia through Sepi to prevent the company from going into dissolution, of which the company has barely been able to repay 1,300 million. Stop losing money depends on elevating international business.

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