The Spanish government has decided to extend an existing financial support program for the country’s shipbuilding and repair industry, which has helped it to receive its highest order intake in more than a decade, according to data from the Industry Ministry of Spanish.
Specifically, the Spanish government compensates shipyards and other industry participants for loan interest paid during shipbuilding and ship repair through a financial support program. The country’s Ministry of Industry said the program supports the development of the shipbuilding and ship repair industry by providing greater certainty and stability for project planning processes.
Currently, Spain has extended this financial support program until the end of 2029, pledging to provide €559 million (approximately US$645 million) in funding to encourage shipyards to engage in new shipbuilding and ship conversion businesses. The program provides financial institutions with compensation of up to 1 percentage point to make up for the difference between the loan interest rate and the benchmark commercial interest rate. These loans are issued to shipowners, shipyards, and third parties.
In 2024, Spain provided a total of €41.14 million (approximately US$47.44 million) in funding for the country’s shipbuilding industry under the support of this program. In 2024, Spanish shipyards signed a total of 40 shipbuilding contracts with a total value of more than €1.5 billion (approximately US$1.73 billion), the highest order volume in more than a decade. The Spanish government attributed this achievement to the implementation of the above-mentioned program.
Currently, Spain is promoting a series of programs to support the development of the country’s shipbuilding industry, such as the Fund to Support Productive Industrial Investment (FAIIP), the Active Financing program, Naval Research, the Development and Innovation Line (IDI) and assistance to Innovative Business Groups (AEIs).
As of the end of 2024, a total of 65 ships were under construction at private shipyards in Spain. The Spanish Ministry of Industry stated, “The government recognizes the importance of the shipbuilding industry to our country and is committed to promoting the diversification, modernization, and productivity improvement of the Spanish shipbuilding industry ecosystem.”