DroneShield to open European factory as exports top AUD $500 million

DroneShield has announced plans to establish its first European manufacturing and in-house assembly facility, expanding its operations to support the continent's defence programmes.

The counter-drone technology firm is setting up a European facility in response to rising demand, as Europe becomes DroneShield's largest export market with over AUD $500 million across dozens of opportunities, surpassing the United States.

The new European operations are intended to support programmes such as the EUR €800 billion (circa AUD $1.4 trillion) ReArm Europe Plan, which aims to improve regional military self-reliance and readiness.

Facility plans

The expansion includes a new sales hub and an additional manufacturing line for select DroneShield products, with at least 65 per cent European-based industry content for certain hardware sold in-region. The company's local production programme is expected to increase demand by qualifying DroneShield for further contracts in Europe.

Recent activity has included completion of an AUD $8.2 million order for dismounted and vehicle-mounted counter-unmanned systems to a major European military customer, marking the fourth successful order from that customer.

Supporting Ukraine

DroneShield's technology remains in active use in supporting Ukraine in the ongoing conflict between Russia and Ukraine. The company has been involved in discussions with frontline units to adapt its devices for new drone threats.

"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," said DroneShield CEO Oleg Vornik.

"This battleground has become ever more important to our European allies as they rapidly expand their defence capabilities. That defence must be centred around the modern threats of warfare which we're engaged with daily, even using AI to significantly advance counterdrone capabilities by accurately identifying, tracking, and classing drones.

"Establishing a robust European supply chain to support equipment sold in the region will strengthen sovereign capability, while DroneShield's experienced Australian software development team will continue to deliver critical updates that address emerging threats faced by customers not only in Ukraine but worldwide."

Workforce and exports

The company intends to expand its European team as part of the new investment and will continue to grow its assembly facilities in Australia to support both local and allied demand. In 2024, exports accounted for 91 per cent of DroneShield's Australian facilities output.

Vornik noted expectations for further growth in Australian defence manufacturing: "Australia's national defence spend is expected to double over the next decade to $100 billion in FY34. DroneShield continues to invest in providing leading-edge sovereign capabilities for Australia's interests while ensuring we are equipped to meet demand from our nation's allies across the globe."