Spain Extends Financial Incentive Program to Support Shipbuilding Industry
Spain Extends Financial Aid for Shipbuilding Industry
The Spanish government has approved an extension of its financial support program aimed at bolstering the shipbuilding and repair sector. This initiative, praised for its effectiveness, has helped the industry achieve its highest order book in over a decade. With a commitment of €559 million ($638 million), the program will now run through the end of 2029, providing critical support to shipyards across the country.
Significant Financial Support for Shipyards
The Ministry of Industry has outlined the details of the subsidy program, which compensates shipyards and related businesses for the interest paid on loans during the construction and repair phases. This financial backing is designed to enhance stability and certainty in project planning, making it easier for companies to navigate the complexities of shipbuilding.
Under the extended program, the government will offer up to one percentage point in compensation to financial institutions. This measure aims to bridge the gap between the interest rates charged on loans to shipowners, shipyards, and other stakeholders and the reference commercial interest rate. In 2024 alone, the program allocated €41.14 million ($47 million) in support, contributing to a remarkable year for Spanish shipyards, which secured 40 new contracts worth over €1.5 billion ($1.7 billion).
Ministry of Steel organizing an event Greening Steel: Pathway to Sustainability
The Ministry emphasized the government’s commitment to the naval industry, highlighting its importance for Spain’s economic landscape. “We are dedicated to the diversification, modernization, and productivity of the Spanish naval ecosystem,” stated a representative from the Ministry. Major beneficiaries of this program include prominent shipbuilders such as the PYMAR group and Navantia, which have collectively received €58 million ($66 million) in grants and are currently managing over 100 initiatives.
Boosting Employment and Innovation in Shipbuilding
The extension of the financial support program comes as the Spanish shipbuilding industry closes 2024 with its order book at the highest level since 2011. By the end of the year, private shipyards in Spain had 65 vessels under construction, generating more than 14 million working hours. This surge in activity not only reflects the industry’s recovery but also its potential for future growth.
In addition to the current program, the Ministry of Industry has a range of initiatives aimed at fostering the development of the domestic shipbuilding sector. These include the Fund to Support Productive Industrial Investment (FAIIP), the Active Financing program, the Naval Research, Development and Innovation Line (IDI), and support for Innovative Business Groups (AEIs). Together, these efforts underscore Spain’s strategic focus on enhancing its shipbuilding capabilities and ensuring a robust future for the industry.
