Who manufactures weapons in Spain?

MadridThe European consortium Airbus, Navantia (public company), Indra, GDELS-Santa Bárbara Sistemas, Expal and ITP Aero. These are the big names in the defence industry in Spain, which, as in most countries, concentrates the bulk of the business in a few hands. Specifically, 80 percent of the business in the State, according to data from TEDAE, the Spanish Association of Technology, Defence, Security, Aeronautics and Space Companies. Of this, more than 50% is in the hands of Airbus. In 2023 alone, companies linked to these branches of activity invoiced more than 13 billion euros.

But that does not mean that they are the only names linked to the arms sector. In fact, in the Spanish case they are accompanied by hundreds of small and medium-sized companies that are part of the value chain and that the Ministry of Defence has placed at around 2,000 companies. However, if only the reference yearbook is observed (Spain Defense and Security Industry 2023), there are 543 companies registered as potential suppliers of material in the General Directorate of Armament and Material in the State. "It is a concentrated sector because we are talking about very complex products. To produce them, advanced and very specific components and parts are needed that require a large number of subcontractors and suppliers, in many cases, small and medium-sized companies," says the expert consultant in defense Carlos Martí.

The muscle, however, of all of them together remains "far from their main European competitors and partners," according to the latest report on the defense industry prepared by the ministry. Which is basically a reflection of the State's investment in the sector in recent years. Now that the Spanish government has committed to spending more - 2% of GDP in 2029 - the sector is rubbing its hands, but the leap it must make if it hopes to catch up with certain competitors is abysmal, especially if they are competitors from outside the European Union. It is in this context that one of the keys to the sector's growth and strength is "being more European," adds Martí. "Preference is given to national production [of the countries], which translates into a relatively small local demand. This prevents the generation of a joint European demand that could be supplied by European companies with a higher production, which would guarantee important economies of scale that would mean lower costs and higher quality," says the expert.

It is in this idea of Europeanization that the European consortium SpaceRise is included, of which the Spanish satellite operator Hispasat has become a part. The project aims to build up to 290 satellites and compete with Elon Musk's Starlink or Kuiper, from Amazon founder Jeff Bezos. In fact, Indra's interest in acquiring Hispasat (it has just taken control with the purchase of 89% of the share capital) skyrocketed following its entry into the European consortium. Now, the arms company is seeking to do the same with its military satellite subsidiary Hisdesat.

What do these companies do?

Aeronautics, defence, security and space. These are the four main pillars of the business. According to the main business association, aeronautical activity and, in particular, military aeronautics is the one that moves the most millions (5,197 million in turnover in 2023). This is followed by the defence and security business (8,042 million euros in turnover, of which 1,515 million are linked to land defence) and, finally, the space business with a turnover of around 1,200 million euros in 2023.

The figures are sustained thanks also to the increase in activity linked to civil aviation, which includes the air force, and to the boost in exports, which have grown with the outbreak of the war in Ukraine, highlighting the demand for weapons, ammunition and military technology. It should be remembered that Spain is one of the main arms exporting countries: the eighth in the world and the fourth in Europe, according to the latest data from the Stockholm International Peace Research Institute (SIPRI) published in 2023. However, discretion – or lack of transparency – continues to characterize the sector, so it is difficult to go beyond the business. to each company.