Ukrainian defence companies move production abroad: Le Figaro
Most Ukrainian arms manufacturers are considering moving part of their operations abroad, Le Figaro reports.
The article notes that, according to a recent survey by Tech Force in UA, about 85% of Ukrainian arms manufacturers are already considering moving part of their production outside Ukraine or have already done so. The main reason for this is the numerous difficulties faced by companies within the country.
In recent weeks, Ukrainian manufacturers have been actively pushing for the lifting of the de facto ban on the export of their products.
Le Figaro notes that, amid Ukraine’s constant requests for military assistance from its allies, the country has also significantly increased its own defence production. Since the beginning of the full-scale invasion, the capacity of Ukraine’s defence industry has grown significantly: in the first six months of this year, ammunition was produced 25 times more than in the whole of 2022. Manufacturers have the capacity to produce up to 4 million drones a year and have started manufacturing 155 mm ammunition in accordance with NATO standards. In addition, up to eight Bohdan howitzers, similar to the French Caesar, have entered the monthly production line.
Among the main reasons for moving production abroad are problems with short-term contracts, delivery delays, and the lack of long-term guarantees needed to invest in research and development. Market representatives say that to be successful, they need stability and predictability, which will facilitate innovation.
Some companies have already decided to circumvent export restrictions by moving production to Slovakia and Poland, allowing them to continue to produce for the international market despite the difficulties they face in Ukraine.
It should be noted that Ukraine is considering lifting the ban on arms exports. At a briefing in Brussels, Defence Minister Rustem Umerov confirmed that some countries have already expressed interest in buying Ukrainian drones and missiles. However, the final decision is up to the country’s leadership.