The potential sale of the Defense Pole by Europlasma marks a turning point for the French military industry and Forges de Tarbes. The Landes group plans to sell its activities, including the Tarbes site, to a French investor for 150 million euros by October. Here is everything you need to know.
Sale by October at the latest
Europlasma stated in a press release on Friday, after being questioned by a parliamentary inquiry commission, that it has reached an exclusive agreement with an undisclosed French investor for the sale of its defense-related activities for 150 million euros. The Defense Pole of Europlasma includes the development, production, and marketing of large-caliber obus hollow bodies (including Forges de Tarbes and Fonderie de Bretagne). The completion of the operation is subject to the lifting of customary suspensive conditions, the press release specifies. The exclusivity period until May 25, 2026, can be extended by one month, and the closing of the sale operation is planned for no later than October 15.
The company did not specify the sites involved but highlighted Forges de Tarbes as “the only forge capable of producing large hollow bodies in France,” serving clients like the French-German defense group KNDS, which is a neighbor of Forges at the Tarbes Arsenal site.
Recently, the CGT expressed concern after production at the site was reportedly slowed down or stopped. Questions were raised about the site’s performance and financial viability as Europlasma struggled with financial losses in the first half of 2025.
A group in difficulty
Europlasma disclosed more than 27 million euros in net losses for the first half of 2025, with a negative operating profit of nearly 11 million euros. The company is yet to announce its full-year 2025 results, over three months after the end of the fiscal year.
In a strategic and sensitive sector, the order book for Forges de Tarbes was filled with contracts amid international conflicts. Last year, the French government allocated 1.4 million euros to Europlasma for production capacity upgrades to manufacture 160,000 hollow obus bodies annually.
José Navarro: “If Europlasma sells, it’s because it’s reaching the end of its logic”
According to CGT representative José Navarro, the sale of Europlasma indicates the company’s struggle. The sale decision comes after pressure and accusations from the parliamentary inquiry commission. However, concerns remain about the transparency and financial stability of Europlasma. KNDS is favored for the takeover, but questions arise about the high price tag and the government’s involvement in supporting a financially unstable company.
