The Spanish government has reaffirmed its commitment to SAIC Motor’s planned electric-vehicle assembly plant in Ferrol, though the investment still requires basic-government authorization. The proposed €200 million project is linked to SAIC’s MG brand and has been presented as a major industrial chance for a region long affected by economic decline. Employment estimates vary by scope: the original project account puts expected jobs at around 1,000, while regional reporting has cited more than 2,000 direct and indirect jobs, including an estimate of approximately 2,300 positions.
The plant is planned for the outer port of Caneliñas, about five kilometres from Ferrol’s naval base and Navantia’s defence facilities. The site is separate from the naval shipyard itself, where Spain builds F-110 frigates and maintains strategic military infrastructure. Its proximity has prompted security scrutiny, with reporting attributing concerns about possible espionage risks to the Ministry of Defence. Those concerns include possible communications interception and cyber exposure, as well as digital mapping of defence infrastructure. Connected vehicles could theoretically collect data, but the reported risks are assessments, not evidence of a confirmed incident.
Because the proposal involves foreign investment near priority infrastructure, authorization by Spain’s Council of Ministers is required; this is not solely a regional planning decision. In October 2026, María Jesús Lorenzana, Galicia’s minister for economy and industry, said the government expected authorization in the coming weeks and described the project as progressing normally. The Xunta and the Ferrol Port Authority have continued preparatory work while SAIC assesses the capabilities of Galician suppliers. Construction was expected to begin in early 2027, subject to the necessary approvals and subsequent implementation steps.
Government officials have said they are assessing economic viability and employment, while also weighing industrial impact against national security. The Minister for Digital Change, Óscar López, has said the project’s different aspects are under examination and that Chinese investment can be compatible with industrial development and security requirements. The review must balance expected economic benefits with safeguards for a strategically sensitive port area.
Political reactions have been swift. Alfonso Rueda, president of the Xunta and a member of the Partido Popular, expressed frustration with the timing and substance of the Defence warnings. He argued that regional and national authorities had worked on the project for months without raising these concerns earlier. Rueda called for a solution that balances national security with Ferrol’s economic needs. Regional officials have presented the investment as a chance to rebuild Ferrolterra’s industrial base, while basic authorities handle the security review.
Ferrol mayor José Manuel Rey Varela, also of the Partido Popular and chair of the Senate Defence Committee, suggested business interests could be influencing the security debate. Sumar, the government’s junior coalition partner, linked the warnings to NATO pressure amid competition between the United States and China. Sumar’s Enrique Santiago dismissed the espionage risk, citing China’s existing technological capabilities. He also pointed to union support for the project, which promises skilled employment and progress in digitalisation and the energy transition.
The proposed facility would assemble MG vehicles using parts shipped from China. The project forms part of SAIC Motor’s effort to expand in Europe and is described as its first European plant. In July, the company tested port logistics by unloading 700 vehicles at Ferrol. The wider proposal also includes a logistics centre in As Pontes. Its economic impact will depend in part on how much work and supplier activity ultimately takes place in Galicia, a question raised by SAIC’s review of local industrial capabilities and the debate over whether the operation would amount to broader industrial investment or limited assembly.
Prime Minister Pedro Sánchez and Deputy Prime Minister Yolanda Díaz have supported the initiative and engaged with Chinese authorities and company executives to secure the investment. For the Xunta and port authorities, the project is part of a wider effort to attract industry and revive Ferrol’s economic base. The planned investment is approximately €200 million. Its timetable and employment effects, as well as its operating conditions, remain tied to the approval process.
Once a major shipbuilding hub, Ferrol has endured decades of job losses and stagnation after the contraction of its naval industry, earning it the nickname “the Spanish Detroit.” Supporters see a major automotive project as a potential turning point. The debate also reflects the competing stakes: regional industrial recovery, including jobs, and protection of nearby defence assets.
Spain’s review of foreign investment in sensitive infrastructure puts industrial policy and national security into the same decision-making process. In Ferrol, authorization from the Council of Ministers will determine whether the project can proceed, while regional authorities, the port and SAIC continue preparatory work. The decision will determine whether the proposed factory advances under safeguards, and what role local suppliers and employment will play in its development.
