Naval Group commits to major investment in Portugal’s Alfeite Naval Yard under new modernization proposal
Lisbon, November 25, 2025 — France’s Naval Group has formally committed to investing tens of millions of euros to modernize Portugal’s historic Arsenal do Alfeite, proposing the creation of a new industrial hub dedicated to naval maintenance, ship support, and long-term fleet readiness for the Portuguese Navy. The plan was presented to the Portuguese government and represents one of the largest foreign industrial commitments to Portugal’s naval sector in recent years.
At the center of the proposal is the creation of a new joint company, co-owned by Naval Group and Arsenal do Alfeite, which would oversee all future maintenance contracts for the Portuguese Navy. According to the release, the goal is to guarantee “the highest levels of operational availability and performance,” while reinforcing Portugal’s sovereignty, strategic autonomy, and a sustainable naval industrial ecosystem.
A Major Upgrade to Portugal’s Naval Infrastructure
The French company plans to invest heavily in upgrading the Alfeite shipyard’s infrastructure, equipment, and industrial capabilities. The modernized facilities would support maintenance and modernization tasks not only for Portugal’s current and future naval assets but potentially also for international clients through Naval Group’s global network.
The joint venture is expected to secure and expand jobs at Alfeite and across Portugal’s naval maintenance supply chain. Naval Group also pledged a structured transfer of know-how, drawing on decades of experience supporting the French Navy and international partners. The company noted its prior success in major technology-transfer programs, including its long-running submarine cooperation with Brazil.
Local Economic Impact: 20% of Frigate Investment to Stay in Portugal
Naval Group stated it intends for 20% of the total value of Portugal’s future frigate program to be reinvested in the domestic economy over the ships’ life cycle — a significant industrial return that could sustain several Portuguese companies for decades. The company described its FDI for Portugal program as a major opportunity to build and modernize Portugal’s naval and maritime capabilities.
A Partnership Built on Ongoing Cooperation
The modernization proposal builds on years of deepening collaboration between Naval Group and Portuguese institutions. Recent cooperation milestones include:
- A Memorandum of Understanding signed on November 6 between Naval Group and LASIGE, the research unit of the University of Lisbon’s Faculty of Sciences, to explore future naval and defense R&D partnerships.
- Participation in Lisbon’s Industry Days on October 23, 2025, where the company met with more than 45 Portuguese companies and academic institutions to integrate national capabilities into European value chains.
- Ongoing collaboration since 2019 with 16 Portuguese companies across 15 European defence cooperative projects, including the NEREUS program (2024–2028), which aims to establish the foundations for next-generation European naval “system-of-systems” architectures.
Together, these initiatives reflect Naval Group’s long-term strategy to foster industrial cooperation, innovation, and capability development in Portugal — foundations that directly support the planned revitalization of the Arsenal do Alfeite.
About Naval Group
Naval Group is a leading global player in naval defense, designing, building, and maintaining submarines, surface ships, and advanced maritime systems. Present across five continents, the company reported revenues of €4.355 billion in 2024 and employs more than 16,700 people worldwide.■
