Ministry of Defence Raises Security Warning
Recently, a joint report submitted by Spain’s Ministry of Defence and intelligence agencies has drawn attention. The report points out that the factory planned by Chinese auto giant SAIC Motor in the city of Ferrol, Galicia, poses potential espionage and security risks due to its proximity to the Ferrol military arsenal and the important Navantia shipyard. The Navantia shipyard is reportedly involved in projects related to US military systems, making the area’s security particularly sensitive.
This report was submitted as a necessary document after the Galician regional government requested the Spanish central government to use an emergency approval process to expedite the project. Although the report raises risk alerts, government sources indicate that relevant departments are studying and analyzing its contents to take appropriate measures.
Minister Voices Strong Support for the Investment

Facing public concern, Óscar López, the Spanish Minister for Digital Transformation and Public Function, conveyed a message of ‘reassurance’ in an interview with Europa Press on August 10th. He explicitly denied that the investment project would be rejected due to security issues, emphasizing that the government is analyzing all aspects of the project and will ultimately make a suitable decision.
López explained that any major investment project undergoes a similar evaluation process, and it is standard procedure for relevant departments to provide recommendations. ‘A series of conditions can be established to make it viable,’ he stated, indicating the government’s preference for mitigating risks by adding safeguards rather than outright halting the project. He expressed confidence that the project will ultimately be approved by the Spanish Council of Ministers and implemented.
Balancing Economic Development and National Security
Minister López described the investment as a ‘very important’ industrial project for Spain and promised that the government would conduct a comprehensive assessment through ‘normal procedures.’ The evaluation will fully consider multiple dimensions, including economic, industrial, job creation, and national security factors.
This stance shows the Spanish government’s attempt to strike a balance between attracting foreign investment, promoting local economic development, and safeguarding national strategic security. The government’s clear statement that the project can eventually proceed also aims to stabilize the confidence of investors and the local community.
Overview of the SAIC Motor Ferrol Project
The project is led by SAIC Motor, one of China’s largest automakers (owner of brands like MG). According to information released by the President of the Galician Government, Alfonso Rueda, in early June, the initial investment amounts to €200 million. The factory is scheduled to begin construction in 2027 and is expected to be operational by the end of 2028. Once completed, the plant is projected to create 2,300 jobs and achieve an annual production capacity of 120,000 vehicles, holding significant importance for boosting the region’s industry and economy.