The Seville plant of Santa Bárbara Sistemas (SBS), a subsidiary of General Dynamics, finds itself at a crossroads due to the potential expiration of essential maintenance contracts. The company's management will meet with representatives from the Ministry of Defense this Thursday to adjust and release budget for the production lines of the SIAC self-propelled howitzers and Leopard vehicles, as communicated by the works council.

Howitzer maintenance activity is already halted, while the Leopard operations are running at a reduced pace. Union sources warn that approximately 55 workers employed through Adecco could lose their jobs as their renewal contracts expire. "The situation confirms the dependence of many workers linked to these production lines," they state, cautioning that a change in the Ministry of Defense's approach could affect more personnel.

Concern over the workload at the Alcalá de Guadaíra plant and the risk to its industrial future and job security has been raised by the Andalusian federation of Industry of UGT. The union has scheduled a follow-up meeting with the Secretary of State for Defense and the spokesperson for the Defense Commission to address the situation and the need to secure new projects.

The pending contracts include the Leopard maintenance contract, valued at approximately 200 million euros and valid until 2026, and the howitzer program, worth 40 million euros until 2027. The factory has reportedly advanced work and materials worth 70 million euros, and the Ministry of Defense has yet to receive eight ready-to-deliver Leopard vehicles.

For its part, the Ministry of Defense denies any breaches and asserts that current contracts related to significant modernization special programs, such as those for the Pizarro and Castor combat vehicles, remain active. However, an appeal filed by SBS with the Supreme Court against the suspension of other programs awarded to a joint venture of Indra and Escribano is still pending resolution.