Australian Firm DroneShield Expands Into Europe With New Production Line
DroneShield has started manufacturing counter-drone systems in the European Union, marking the company’s first production line outside Australia as European militaries expand investments in air defense and counter-drone capabilities.
The Australian defense firm said production is underway through a partnership with an unnamed contract manufacturer that will handle full system assembly and component manufacturing.
Work includes printed circuit board assembly, precision machining, cable and wire harness production, and system testing.
Deliveries from the new European production line are expected to begin in mid-2026.
DroneShield said the move aims to strengthen its position in European procurement programs that increasingly favor locally produced equipment and resilient regional supply chains.
The facility will also support the company’s plan to expand global manufacturing capacity from roughly $500 million in annual output in 2025 to about $2.4 billion by the end of 2026.
European demand for counter-drone systems has grown rapidly as governments invest in air defense modernization and drone protection measures under initiatives such as the ReArm Europe Plan/Readiness 2030 framework.
“Europe is undergoing a profound shift in counter-UAS preparedness,” DroneShield chief executive Oleg Vornik said. “By establishing dedicated manufacturing in the EU, DroneShield is contributing to Europe’s sovereign capability while continuing to deliver rapidly and reliably for our European customers.”
Europe Ramps Up Drone Factory Construction
DroneShield’s expansion follows a wave of new drone manufacturing projects across Europe as governments and companies work to scale domestic production.
February 2026 alone saw at least three moves to ramp up drone production in the region.
Ukrainian drone maker Ukrspecsystems opened a new factory in eastern England aimed at securing a steady supply of drones for Kyiv’s forces. The project includes a production facility in Mildenhall and a testing site in Elmsett, representing a 200-million-pound ($267-million) investment.
Germany has also become a hub for joint drone manufacturing initiatives. Wingcopter partnered with Ukraine’s TAF Industries to establish drone production in Germany as part of Kyiv’s “Build with Ukraine” program, which aims to expand defense manufacturing with European partners.
Meanwhile, Ukrainian defense company Skyfall entered discussions with the Danish government to set up production capacity in Denmark, potentially partnering with local firms under the Build with Ukraine program to expand European manufacturing of Ukrainian‑designed drones.
