Greek shipbuilders propose 15-year domestic warship and submarine programme

The Hellenic Shipbuilders’ Association has called for a binding 15-year programme to build surface warships and submarines for the Hellenic Navy in Greece. Its president, Panos Xenokostas, set out the proposal at a Greek-Cypriot defence industry event associated with the European Defence Industry Programme. The plan is an industry proposal; the Greek government has not announced its adoption.

Xenokostas, who also leads ONEX Shipyards & Technologies, argues that predictable orders over many years would allow Greek yards and suppliers to invest in production lines, facilities, certification and specialised workers. The association wants shipbuilding and long-term support to form a continuing domestic industrial cycle instead of a series of isolated contracts.

A central target is 70% Greek added value in a future frigate or submarine programme. Xenokostas presents that level as achievable through the yards and their network of smaller companies. It is a proposed target, not a measured share in a signed shipbuilding contract. The association says a stable national programme could support hundreds of small and medium-sized suppliers.

The proposal arrives while the navy is renewing its surface fleet and considering future submarine needs. Greece’s FDI frigates are being built in France, and Athens has plans for modernising its MEKO 200HN frigates. The contrast underpins the association’s appeal: it wants a greater share of future construction, systems integration, maintenance and upgrades to be carried out in Greece.

The association recognises that some major components, including engines and missiles, cannot presently be produced entirely in Greece. It argues that domestic yards can nevertheless expand their role in integrating systems, testing, software upgrades, repairs and certification, while negotiating technology transfer with foreign partners. Its proposal also calls for closer cooperation with Cyprus and for Greek-built naval units to compete eventually for export orders.

European funding is part of the context, although neither EU instrument constitutes an automatic award to a Greek yard. The European Commission adopted a €1.5 billion work programme for the European Defence Industry Programme in March 2026, while the SAFE instrument offers up to €150 billion in loans for member-state defence investment. The shipbuilders want such programmes to reward real production capacity and industrial participation in Greece.

Turning the association’s plan into a funded naval programme would require government decisions, operational requirements from the navy and agreements with suppliers. Xenokostas’s stated priority is that long-term fleet renewal should sustain shipbuilding skills and a Greek supply chain, including cooperation with Cyprus, rather than leave local yards confined to occasional support work.