Greek defense industry expands overseas with new partnerships, investment projects

From manufacturing advanced optics to shipbuilding, from armored vehicle production to aerial defense solutions, Greece’s defense-related companies are expanding their international presence through new partnerships, investment projects and export contracts. Backed by a 12-year national defense modernization program and a European rearmament drive, Greece is emerging as a regional leader in the world’s $500 billion defense market.

Just in the last few months, Greek companies and associations have inked new cooperation deals with their counterparts in France, the U.S., Ukraine, Israel and South Korea. And at the recent Eurosatory defense exhibition in Paris, the enhanced Greek participation included 19 companies and a national pavilion organized by the Hellenic Manufacturers of Defence Materiel Association (SEKPY), under the auspices of the Ministry of National Defence and with the support of Enterprise Greece. With more than 2,600 exhibitors from 68 countries, this year’s exhibition was the largest ever.

With its €26 billion defense modernization program, Greece has one of highest defense spending ratios in Europe. Combined with the country’s recent induction into Europe’s new SAFE program, Greece sees allied industries like defense, aerospace, IT and cybersecurity as one of the keystones to its economic growth and diversification.

As part of that growth and diversification, Greek companies have been increasingly engaging with international partners to either expand their overseas footprint, or to participate in the defense procurement programs of the Greek government. For example, as much as 25% of the next €982 million Belharra FDI class frigate being acquired from France’s Naval Group, will be made in Greece. Likewise, at last month’s Eurosatory exhibition, Greece’s Metlen and KNDS France unveiled their jointly produced VBCI Philoctetes armored fighting vehicle, an initiative designed to meet the Hellenic Army’s need for a large number of infantry fighting vehicles as well as that of other European armies.

Also at the Eurosatory exhibition, SEKPY signed a Memorandum of Cooperation with the Ukrainian Council of Defence Industry for joint development and production of materiel and technologies, participation in bilateral or multinational programs, and the exchange of know-how. Advanced Greek optics company Theon International signed an agreement with France’s Safran Electronics & Defense to jointly develop new electro-optical solutions for drones and, separately, with U.S.-based private equity company Carlyle to potentially acquire its stake in hi-tech French defense company SAS Stéropès. Finally, Greece’s EFA GROUP of companies signed a strategic cooperation agreement with U.S.-based Shield AI for the joint development and integration of AI autonomous navigation systems for unmanned vehicles.