Counter-drone device-maker DroneShield will open a new manufacturing and in-house assembly facility in Europe as part of a significant expansion of its operations.
The facility is the Australian defence tech company’s first overseas manufacturing line, ensuring more of its European orders can be fulfilled from the continent.
Europe already represents the company’s biggest export market, with more than $500 million of its $1.1 billion pipeline of defence, critical infrastructure and law enforcement orders.
But with the €800 billion (A$1.4 trillion) ReArm Europe plan requiring a minimum 65 per cent of local content, the new hub intends to give DroneShield a greater foothold in Europe.
DroneShield chief executive Oleg Vornik said the new manufacturing program, which includes a new sales hub, will establish a “robust European supply chain to support equipment sold in the region”.
“We haven’t only supplied technology in Ukraine, we’re in ongoing discussions with frontline soldiers through our new Sydney headquarters, updating their devices to counter new Russian drone attacks,” he said.
“This battleground has become ever more important to our European allies as they rapidly expand their defence capabilities.”
The new European manufacturing facility will make “select DroneShield hardware, with at least 65 per cent European-based industry content for certain products sold in the region”, the company said.
DroneShield technology is used in a growing number of countries, not just Ukraine, where the counter-drone devices are stopping brutal drone attacks by Russian forces.
Recent deals include an $8.2 million order with an unnamed European military customer — its fourth order from the customer — for dismounted and vehicle-mounted counter-unmanned (CUxS) systems.
All but about 10 per cent of manufacturing is done in either the NSW suburb of Bella Vista or Adelaide, with the remainder performed at the company’s Pyrmont headquarters.
According to the company, 91 per cent of what it manufactured in Australia last year was exported. Apart from Europe, DroneShield’s other major export markets include North America, Latin America and the Middle East.
The company is planning to separate out what manufacturing it does perform at its Pyrmont site to a new dedicated space in Sydney, freeing up more space for staff.
The headquarters, which opened earlier this year and is considered key to the company’s future growth, is home to the bulk of DroneShield’s 280 staff, including 200-odd engineers.
The company also plans to continue growing its European team, having recently appointed a network of experts in Denmark and Germany, providing on-the-ground support for customers.
Last year, DroneShield signed the first ever counter-drone procurement agreement with NATO, paving the way for future contracts with European nations.
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