Naval Group ramps up European frigate sales amid rising defence budgets

Naval Group, owned 35% by Thales, is capitalising on heightened European defence budgets by expanding its export footprint beyond France. Contracts secured in the Netherlands, Belgium, Greece and Sweden now represent roughly a fifth to a quarter of its €4.7 billion annual turnover, a dramatic rise from zero in 2019. The company attributes its advantage to a pre-existing production line that can deliver frigates in under four years, a speed that appeals to navies facing Russian threats and doubts about U.S. security guarantees.

At its Lorient shipyard, three Greek ships are at various stages, a Swedish frigate is under construction, and two French vessels are being built and tested. Naval Group is also preparing a bid for Denmark's closely watched frigate tender, competing with BAE Systems, Babcock and other European yards. To meet local content rules, it partners with suppliers such as Salamis Shipyards in Greece and Saab in Sweden, while rivals like Germany's TKMS and Dutch group Damen have struggled with delays on their own programmes.