MBDA set to expand workforce and boost missile production amid European defense ramp-up

"The challenge we face is to continue adapting to a changing environment while fostering cooperation, especially at the European level," said MBDA CEO Eric Béranger during a Wednesday earnings conference in Paris. The conglomerate's shareholders include Airbus (holding 37.5%), BAE Systems (37.5%), and Leonardo (25%).

"We aim to be prepared to meet new military requirements from clients, ensuring their national sovereignty in a global landscape where force often challenges the rule of law," Béranger stated.

"MBDA is forecasting the future and adapting quickly. This is why we're ramping up production capabilities, significantly speeding up the production of missile systems such as the Akeron MP, Aster, Brimstone, CAMM, Enforcer, Exocet, MICA, and Mistral," the conglomerate announced in a press release.

In 2023, it has secured major contracts from countries including France, Italy, Germany, the United Kingdom, Spain, Greece, Sweden, and Poland. Specifically, it has landed a significant deal for the supply of CAMM missiles to our country.

"MBDA is gearing up for wartime production to support sovereignty," the company asserts. Currently employing around 14,000 people, it plans to invest €2.4 billion ($2.64 billion) from 2023-2028. This year alone, it aims to hire an additional 2,600 workers.

Europe Ramps Up Production

The conflict in Ukraine has sparked a surge in the European armaments industry, expected to continue for a considerable period, as reported by "The Economist" last September.

In February 2024, Rheinmetall in Germany commenced construction on a new ammunition factory. Located in Niedersachsen, the factory will focus on producing artillery ammunition, explosives, and rocket artillery components.

The project, valued at €300 million ($330 million), is financed by Rheinmetall without state subsidies. About 500 people will be employed at the factory, with construction anticipated to last 12 months.

In early March, the European Commission urged the European Investment Bank (EIB) to revise its policy this year to start funding defense sector projects. This move is part of the inaugural EU strategy for the defense industry launched in March.

NATO Arms Itself

NATO Secretary-General Jens Stoltenberg announced in mid-February that in 2024, 18 countries will allocate at least 2% of their GDP to defense. He highlighted that since 2014, European NATO members and Canada have boosted their defense spending by a total of $600 billion.

Currently, Poland is dedicating 4% of its GDP to defense, twice the recommended level for NATO countries.

The tendency to increase defense budgets is also evident among Poland's neighbors. In 2024, Lithuania plans to allocate 2.75% of its GDP to defense, aiming to increase it to 3% the following year. Romania is striving to build the second-largest army in the region, trailing only Poland. For the first time in thirty years, Germany has also submitted plans to NATO outlining defense spending exceeding 2% of its GDP.