Key facts
- Naval Group's European clients now account for 20% to 25% of its €4.7 billion annual turnover.
- The company is bidding to build frigates for Denmark.
- Naval Group delivered its first frigate to the Greek navy last year.
- Steel has been cut for the first of four frigates ordered by Sweden in August.
- Naval Group can build two Defence and Intervention Frigates per year in Lorient.
French warship builder Naval Group is intensifying its efforts to secure European contracts amid increased defence spending across the continent. The company, which is state-controlled and competes with BAE Systems and TKMS, has seen its turnover from European clients outside France rise to 20%-25% of its €4.7 billion annual revenue, up from zero in 2019.
Naval Group is preparing to bid for a significant frigate tender in Denmark, driven by heightened security concerns in Europe following Russia's invasion of Ukraine and ongoing conflicts in the Middle East. Executives believe their ability to deliver ships quickly and reliably provides a competitive advantage, especially as rivals like Damen have faced delays and budget issues with their frigate programs in the Netherlands and Belgium.
The company's shipyard in Lorient, France, is currently constructing ships for Greece, with the first frigate delivered last year. Steel has also been cut for the first of four frigates ordered by Sweden in August, and two vessels for the French navy are in production. Naval Group states it can produce two frigates annually, aiming to reduce delivery times to under four years.
Despite these efforts, competition remains fierce. Naval Group lost a contract for Norway's frigates to BAE Systems and is currently vying with Babcock for the Danish deal. To secure contracts, Naval Group collaborates with local suppliers, such as Salamis Shipyards in Greece and Saab in Sweden, integrating their solutions into its offerings.