General Dynamics' subsidiary in Seville, specifically in Alcalá de Guadaíra, has initiated a workforce adjustment. This decision stems from the halt of maintenance programs for Leopard main battle tanks and SIAC howitzers by the Ministry of Defense. Initially, the company has let go of twelve temporary contract workers, but industry sources indicate this reduction could affect an additional 20 individuals in June and a total of 70 employees by the second half of the year.
The anticipated lack of workload between 2027 and 2029 is already impacting the factory, which currently employs 350 permanent and temporary staff. If all potential contract terminations materialize, the workforce could shrink to 250 employees by year-end, meaning 102 workers would leave.
The maintenance contract for the Leopard tanks, valued at approximately 200 million euros, was initially set for three years, ending in 2026, with no renewal option. The SIAC howitzer program, with a budget of 40 million euros, also concludes at the end of 2026. Currently, the plant houses 19 Spanish Army Leopard tanks, four of which have been completed and await reception by the Ministry of Defense.
The Ministry of Defense, led by Margarita Robles, has not provided the company with explanations for the cancellation of these programs, despite the department's recent budget increase, the current European geopolitical climate, and previous acknowledgments for work performed, including the preparation of Leopard tanks for Ukraine.
The cancellation of these maintenance programs also affects the investment announced by SBS in Alcalá de Guadaíra. The company had planned to invest 60 million euros by 2029 in a Center of Excellence for Advanced Manufacturing, focused on producing critical defense system parts through 3D printing and industrial digitalization. A quarter of this investment has already been spent.
This center of excellence was dedicated to the sustainment of Leopard tanks, the modernization of Pizarro vehicles, and Piranha III amphibians. Furthermore, Alcalá de Guadaíra serves as the integration and testing hub for the VCR 8x8 Dragón, the Spanish Army's largest land modernization program.
The company has warned the works council that this situation poses a significant risk of losing industrial knowledge and strategic capabilities, at a time when strengthening the national defense industrial base is a priority.
Concurrently, the factory in Trubia, Asturias, is also affected. The Ministry of Defense has canceled the production of 120 mm tubes for the Leopard tanks, and delays in the Tracked Support Vehicle (VAC) program, valued at nearly 2 billion euros, could worsen the situation in the Asturian center.
Previous disagreements have occurred between Santa Bárbara Sistemas and the central government, some escalating to legal disputes. Among these, SBS filed an appeal against the award of wheel and track programs to the consortium Indra-Escribano Mechanical & Engineering (EM&E) for 7.24 billion euros, which was rejected by the Supreme Court.
