Lufthansa breaks ground on Portuguese repair plant as CEO declares readiness to run TAP ‘today’

Groundbreaking ceremony

Lufthansa Technik started building its new industrial unit at the Lusopark business park in Santa Maria da Feira on 29 June 2026. The facility, with a footprint of about 55,000 square metres, is scheduled for completion in late 2027 and will begin repairing engine parts and aircraft components in 2028. It is expected to create up to 700 highly skilled jobs; 300 people are already receiving specialised training. Prime Minister Luís Montenegro noted that all administrative procedures were completed within roughly a year, calling it “the Portugal of the future that responds fast and based on confidence.”

This is the Portugal of the future we want. The Portugal that responds fast, that responds based on confidence.

The Mayor of Santa Maria da Feira, Amadeu Albergaria, said the municipality was already feeling positive effects in employment, interest from other companies, and demand for housing construction licences.

TAP privatisation angle

Spohr used the occasion to underline the group’s interest in acquiring a stake in TAP Air Portugal. The Portuguese government plans to sell 44.9% to 49.9% of the carrier, with a decision expected this summer. Spohr said, “I can start working today if the Prime Minister wants,” while stressing that the group respects the government’s decision. He argued that Lufthansa is the best partner, adding that the TAP sale “is not just a question of price, but of finding the right partner.” The German CEO highlighted Lisbon’s hub as a gateway to Brazil and Latin America, noting that routing traffic via Frankfurt or Zurich would lose optimisation that a south-west European hub would provide. Air France-KLM is also reported to be in the race.

I can start working today if the Prime Minister wants.

Bilateral and political context

Montenegro framed the investment as a symbol of Portugal’s relationship with Germany. He recalled a recent meeting in Berlin with Chancellor Friedrich Merz during which they launched what he described as a new cycle of strategic partnership. The Prime Minister also used the platform to promote the government’s low-tax, pro-investment agenda, saying, “We want people to pay less tax on their labour income so they can be more motivated and productive, and we want companies to pay less tax so they have more room to invest.”

We look at this group as a good example of what relations between Portugal and Germany can be.

Venezuela earthquake condolences

At the ceremony Montenegro addressed the earthquakes that struck Venezuela on 24 June, which have caused at least 1,450 deaths and 3,150 injuries, with over 50,000 people missing according to the United Nations. Among the victims are 53 Portuguese or luso-descendant fatalities, including eight children, while 89 Portuguese citizens remain unaccounted for. Montenegro sent sympathy to Venezuela’s president and people and promised that Portugal would “be even closer to that people and that country in the coming months and years, to build a more prosperous and fair future.”

Factory details and wider Lufthansa strategy

The investment contract signed between AICEP and Lufthansa Technik values the project at around €223 million, while total investment is expected to exceed €300 million, with Portuguese state support of €24.75 million under the contractual investment regime. Spohr said the group is transforming from a German airline into a European one, pointing to previous investments in Swiss, Austrian Airlines, Brussels Airlines and ITA Airways. Portugal, he said, fits into that transformation. Alongside the factory, Lufthansa launched its Help Alliance social programme in Portugal, the first such charity outside Germany, and is considering opening a pilot school in the country.