According to reports by Reuters, quoting the Spanish newspapers El Mundo and El Pais, a spokesperson for the Spanish Ministry of Defense stated on the 11th that the ministry has no objections to China's SAIC Motor building an automobile factory in Galicia.
Spanish intelligence agencies have indicated in internal documents that there are security risks associated with this project. The planned site is only 5 kilometers away from Puerto Ferrol, which is an important naval base for the F-100 frigates participating in NATO missions. Media reports suggest that the military is concerned that this Chinese company might collect sensitive information about the daily movements of ships.
According to the plan, this factory will be SAIC's first factory in Europe. It will require an investment of 200 million euros and will start construction next year, with production scheduled to begin in 2028. The factory will produce cars under the MG brand, focusing on new energy technologies. The annual production capacity is expected to reach 120,000 units. The factory will create 1,000 job opportunities.
The government of the autonomous region of Galicia in Spain stated that Defense Minister Margarita Robles promised on Tuesday that she would support the project during cabinet deliberations. The Spanish Ministry of Defense said that they participated in months of negotiations related to the project with SAIC Group and did not raise any concerns regarding safety.
Chinese Foreign Ministry spokesman Guo Jiaqun said on the 12th that China has taken note of the positive statements made by the central and local governments of Spain. China is willing to continue to deepen practical cooperation with Spain based on the principles of mutual respect and mutual benefit. It is hoped that Spain will provide a fair, just, and non-discriminatory business environment for Chinese enterprises.
SAIC Group is one of many Chinese car and battery manufacturers that have established operations in Spain. Chery Automobile recently began producing the Omoda 5 at the former Nissan factory in Barcelona. Loppear Automobile produces the B10 compact SUV at its Stellantis factory in Zaragoza. After the closure of old automobile factories in Spain, these Chinese-owned enterprises have contributed to the economic recovery in some regions.
Chinese automakers are currently expanding their production capacity in Europe. BYD's factory in Szeged, Hungary, has already started trial production. Germany is also discussing the possibility of Chinese companies utilizing idle production facilities.
