Nobody expected a car factory to turn into a national security question. But that’s exactly what happened with SAIC’s upcoming plant in Ferrol, Spain. SAIC, the owner of MG, is ready to pour nearly 197 million euros into a facility built to produce 120,000 electric and hybrid vehicles a year — and it picked what might be the worst possible spot in Spain, geopolitically speaking.
According to El Pais and several other Spanish outlets, the site sits just minutes from a major Spanish Navy complex and the Navantia military shipyard. Both the Ministry of Defence and the National Intelligence Centre (CNI) have taken notice. This isn’t about proven espionage — it’s about the risk of access to information on naval activity. No public evidence suggests SAIC intended the car project for anything beyond cars. But the location really is an unusual choice.
And Ferrol gives plenty of reason for concern: it’s exactly where Navantia is building brand-new F-110 frigates for the Spanish Navy, along with ship repair, modernization, and the integration of combat systems and propulsion units. Navy-linked military facilities sit right next door. Against that backdrop, SAIC’s plan looks far more concrete than the early rumors of a “simple MG assembly line.”
Galicia’s official documentation shows a modest starting point: receiving parts, full assembly, quality control, and shipping. But it doesn’t stop there. The company says stamping, body, and paint production will gradually follow, along with component localization. The project is expected to create around 1,000 direct jobs, with another 1,000 anticipated indirectly.
Construction was set to start in 2027, with the plant opening in 2028. But this is neither a working factory nor a fully finalized investment yet. Under Galicia’s published documents, the whole project hinges on land concessions, permits, and approval of foreign investment from the central government. On the official portal, it’s still listed as in processing.
It’s almost a paradox. Economically, Ferrol is a win for SAIC: a port, ready industrial infrastructure, and the ability to build up to 120,000 cars inside the EU. But the location itself now risks becoming the most sensitive part of the entire project. The factory hasn’t even been built, and the debate over its proximity to a naval base is already louder than any talk of future MG models.
