Wildfires sweeping through the Gironde department in southwestern France have prompted evacuations and protective measures at strategically important defence and aerospace facilities around Bordeaux, disrupting one of the country's most vital industrial clusters. The blazes, which broke out on 22 July, have burned approximately 42,000 hectares, forced the evacuation of around 220,000 people, and destroyed about 240 homes, according to the latest official figures.
Among the affected companies are ArianeGroup, Dassault Aviation, Airbus Atlantic, and missile-propulsion specialist Roxel. The French Defence Ministry reported that 1,500 military personnel have been deployed since Saturday to support the emergency response, with experts and resources sent to help secure industrial sites in coordination with other government departments.
ArianeGroup, whose facilities in the area produce propulsion systems for Europe's Ariane rockets and France's M51 ballistic missiles, told AFP on Monday that it is in constant contact with local and national authorities. The issues related to the protection of ArianeGroup sites are being addressed, the company stated.
French media TF1 reported that Roxel, a subsidiary of European missile manufacturer MBDA, operates at the high-risk industrial complex in Saint-Médard-en-Jalles, where it produces solid-propellant systems for tactical missiles. A few kilometres away, complexes belonging to Dassault, Safran, and Thales also appear vulnerable. Roxel told Le Monde that the necessary measures had been taken to protect its operations and employees, with support from the authorities.
According to Defense News, Dassault Aviation was working with France's Directorate General of Armaments and the prefectural authorities, as it had transferred sensitive equipment from its Martignas plant and Cestas logistics centre to its Mérignac site and nearby Air Base 106. The company also told AFP that most employees at its Mérignac and Martignas facilities were remaining at home. Dassault's Mérignac facility handles the final assembly and flight testing of Rafale fighter aircraft and Falcon business jets, while its Martignas plant specialises in aerostructures.
Airbus Atlantic also evacuated employees from its Salaunes facility at the authorities' request. The site produces fuselage components for Airbus A220 and A350 aircraft. The disruption to strategic industry is part of a much broader economic shock across Gironde, which Economy Minister Roland Lescure described as an economic thunderbolt affecting a region that did not need it.
Economic disruption spreads across sectors
More than 13,000 businesses are located in Gironde's evacuation zones, including approximately 7,000 craft businesses and 6,300 retailers, according to France's Economy Ministry. They have been unable to operate normally because of evacuation orders. The Bordeaux-Gironde Chamber of Commerce and Industry estimates that around 130,000 employees have been prevented from working normally.
Carsten Brzeski, ING's global head of macroeconomics, said the overall economic impact should become measurable, pointing to lost working hours, lower productivity, and disruption to logistics. The French government announced emergency support on Monday for businesses affected by fires in Gironde, the Landes, and the Var. Companies in evacuation zones will be able to use the state-supported partial-unemployment scheme. France Assureurs also extended the deadline for submitting claims until 31 August. A meeting will be held at the Economy Ministry on Thursday to provide more precise answers to affected companies, Industry Minister Sébastien Martin told BFMTV-RMC.
Tourism businesses face cancellations and closures during what should have been one of their busiest periods of the year. Companies across the affected area are also reporting spoiled stock, interrupted supply chains, and employee absences. The fire is also disrupting activity in the Landes de Gascogne forest, one of the main centres of France's commercial timber industry. The timber sector is the third-largest industrial sector in Nouvelle-Aquitaine, supporting approximately 56,000 jobs, including around 34,000 connected with the Landes de Gascogne forest, and generating an estimated €10 billion in annual revenue.
Bordeaux's vineyards had escaped direct fire damage as of 27 July, according to Le Monde. Winemakers nevertheless warned that smoke could taint grapes and affect the quality of forthcoming vintages. The eventual economic cost is likely to extend far beyond visible destruction and the losses covered by insurers. According to Allianz Research, only around 10% of European economic losses from heatwaves, droughts, wildfires, and other climatological events were insured between 1980 and 2022. By comparison, more than one-third of losses caused by storms, hail, and wind were insured.
These calculations cover only direct damage to assets. They exclude deaths, healthcare expenditure, and lost productivity, which can represent a substantial part of the cost of heatwaves and wildfires. A study published in Nature Sustainability estimated that California's 2018 wildfires caused $148.5 billion in total damage. Direct capital destruction represented 19% of that figure, while health costs accounted for 22% and indirect economic disruption for 59%. The study found that supply-chain effects spread far beyond the burned areas, with more than half of the indirect losses occurring outside California. The European Central Bank separately estimates that only around one-quarter of climate-related catastrophe losses in the EU were insured between 1980 and 2022.
For context, these fires follow a pattern of extreme heat across southern Europe, as seen in France and Spain racing to contain wildfires amid a heatwave that threatens new devastation. The blazes in Gironde have also reshaped the final stage of the Tour de France, as Pogačar's victory was overshadowed by the fires. Meanwhile, Spain has faced its own catastrophic wildfires, with Prime Minister Sánchez warning of difficult hours ahead, as reported earlier.
