Defense factories in European Union countries are demonstrating unprecedented growth in production capacities in response to the ongoing Russian aggression against Ukraine. According to a study of 37 leading defense companies, about one-third of them are currently expanding their factories or actively constructing new ones.
This is reported by Business • Media
Rapid Growth in Area and Production Volumes
From 2020 to 2021, construction activity at EU defense enterprises covered 790,000 square meters, while for 2024–2025, this area has increased to 2.8 million square meters. The main driver of this expansion has been the EU’s Act in Support of Ammunition Production program, with a budget of 500 million euros, aimed at addressing the shortage of ammunition and missiles.
Thanks to these initiatives, annual ammunition production in the European Union has increased from 300,000 to 2 million units. Among the companies actively ramping up their capacities are Rheinmetall, N7 Holding, BAE Systems, and MBDA. In particular, MBDA has significantly accelerated the production of Aster surface-to-air missiles, achieving a 400% increase in volumes by 2025 compared to previously forecasted rates.
“The increase in production is occurring against the backdrop of demand from European militaries and a severe shortage of missiles for Ukrainian SAMP/T air defense systems.”
New Developments and Strengthening Defense Capabilities
France and the United Kingdom have announced cooperation in the development of a next-generation air-to-air missile to replace the current Meteor missile. This will enhance the military capabilities of EU countries in the face of rising threats.
Additionally, the Polish Ministry of Defense plans to significantly expand the size of its army, increasing it to over 500,000 personnel in the near future. Currently, the Polish armed forces number over 210,000 servicemen, and by the end of the year, this number is expected to grow to 230,000.