idD Portugal Defence and Fincantieri partner to revitalize Arsenal do Alfeite

The Portuguese government has announced a partnership between the state-owned entity idD Portugal Defence and the Italian company Fincantieri to revitalize the Arsenal do Alfeite naval shipyard. This initiative aims to implement a new management and operational model for the facility, which has faced severe financial difficulties for several years.

Under the framework of European SAFE loans, Portugal will acquire three new-generation frigates from Fincantieri. This deal includes investments in the Arsenal do Alfeite through a joint venture between idD Portugal Defence and Fincantieri. The joint venture will be responsible for executing investments, upgrading the shipyard, and promoting worker training and qualification under a state sub-concession.

Defense Minister Nuno Melo met with the company's administration and workers' commission to discuss the transition. The government has guaranteed that no job losses will occur during this process, stating that the revitalization is structured to protect existing workers and leverage their expertise to ensure the shipyard's long-term sustainability. The transition to the new model is expected to take approximately one year.