Naval Group Targets European Warship Market as Defence Spending Rises

French warship builder Naval Group is expanding its push into European defence markets, betting that its ability to deliver frigates quickly will help it compete for contracts as governments increase military spending.

The state controlled company said customers outside France now generate 20% to 25% of its €4.7 billion annual revenue, compared with none in 2019. Recent contracts have come from the Netherlands, Belgium, Greece and Sweden.

Naval Group is now preparing a bid for Denmark, where a major frigate tender has attracted strong international competition as European countries strengthen their naval capabilities amid security concerns linked to Russia and conflicts in the Middle East.

Guillaume Weisrock, the company’s senior vice president for sales and business development, said European governments are increasingly looking for warships that can be delivered quickly and equipped with proven systems.

Naval Group, which is 35% owned by French defence technology company Thales, has benefited as some rival programmes have faced delays and cost problems. Germany cancelled a major frigate programme in June after Dutch shipbuilder Damen failed to meet delivery and budget targets, while Belgium has also faced delays involving Damen.

At Naval Group’s shipyard in Lorient, three frigates for Greece were at different stages of construction or testing last week. The company delivered its first frigate to Greece last year. Construction has also begun on four frigates ordered by Sweden, while vessels for the French navy are being built and tested.

Naval Group says its existing production line allows it to build two Defence and Intervention Frigates each year, with delivery times of less than four years and a longer term target of about three years.

The company faces strong competition, including from Britain’s BAE Systems and Babcock. Naval Group lost a Norwegian frigate contract to BAE Systems last year and is competing with Babcock for Denmark’s order.

The French company is also working with local firms in countries where it seeks contracts, including Salamis Shipyards in Greece and Saab in Sweden, where Swedish equipment must be integrated into the vessels.