Greek Defense Industry: The first deals that open new perspectives – Greek companies and international alliances

The catalyst was the war in Ukraine, the ongoing instability in the Middle East, rising geopolitical tensions and Europe’s need to gain greater strategic autonomy. These developments transformed defense from a limited budgetary sector into a key development priority, creating a new reality for defense industries across Europe.

The €30 billion armament program announced by the government until 2036, combined with the European Union’s decisions to strengthen the production base, new financial tools and the mobilization of hundreds of billions of euros for defense investments, is creating a completely different environment for Greek companies in the sector.

Greece is now attempting to change its role. From a country that for decades was limited mainly to the supply of weapons systems from abroad, it seeks to evolve into a technology producer and industrial partner of international defense programs. Although the country's defense spending exceeds 3% of GDP, the contribution of the domestic defense industry remains limited, as it does not exceed 0.7% of GDP.

Having left behind the first generation of major armament programs, such as the FDI Belharra frigates and the Rafale fighters, and the rest with a total value of approximately 15 billion euros, in which the participation of Greek industry was disproportionately small, the conditions now seem to be changing.

The Hellenic Dome as a catalyst
The most characteristic example is the "Achilles Shield" and the creation of the Hellenic Dome. The program is not only about strengthening national air defense, but it is the first major test for the substantial participation of the Greek defense industry in high-value-added projects.

The provision for Greek industrial participation of 25% – although it has not yet been institutionalized – creates the conditions for the transfer of know-how, the development of new production capabilities and the creation of a sustainable ecosystem of partnerships.

Greek companies are estimated to claim a project worth at least 700 million euros from the 3 billion euro program, as stated by the Minister of National Defense Nikos Dendias. However, as industry executives point out, the greatest benefit is not only financial. It is the possibility of integrating Greek companies into international supply chains and acquiring know-how that will allow them to participate in corresponding programs abroad.

Thus, interest is no longer limited to announcements. The first agreements, strategic partnerships and co-productions that have already been announced reflect the new dynamics taking shape in the market.

The first deals confirm that the Greek defense industry is entering a period of substantial transformation, where the aim is not only to meet the needs of the Armed Forces, but also to create an extroverted industrial base with an international orientation.

The first companies of the Hellenic Dome
The 3 billion euro armament program for the Hellenic Dome, which received the green light a few days ago from the KYSEA and according to information reported by newmoney.gr, the signatures between the General Directorate of Defense and the Israeli SIBAT may be a matter of days.

The initial industrial design, after months of negotiations, foresees the participation of EAB, EAS, METLEN, Miltech, Scytalys, Akmon, Salamis Shipyards and GEK TERNA.

The list of companies is expected to expand as the three-year implementation of the program progresses, with Greek companies undertaking a significant part of the project, gaining access to cutting-edge technologies and creating the conditions for participation in future international defense programs.

According to the same information, the final choice for the vehicles that will transport the individual systems of the "Achilles Shield" concerns IVECO, which is represented in Greece by the Syngelidis Group, in collaboration with METLEN.

Strategic partnerships that change the map
Mobility is not limited, however, to the Hellenic Dome. Recently, a series of strategic partnerships between Greek and foreign defense groups have been announced, which confirm that the Greek defense industry is gaining an increasingly active role in international defense systems production and development chains.

Specifically:

METLEN and the French KNDS France signed a strategic agreement for the transfer of know-how and the production in Greece of the VBCI Philoctetes armored combat vehicle, creating prospects for both meeting the needs  of the Greek Armed Forces as well as for export activity.

Hellenic Defense Systems (EAS) and the Czech group CSG created the company Hellenic Ammunition, with the aim of producing small and large caliber ammunition, as well as critical explosives in Greece.

The Hellenic Aerospace Industry (EAB) has expanded its cooperation with the Israeli Israel Aerospace Industries (IAI), which concerns the programs for the BlueWhale autonomous unmanned submarine and the integration of the Centaur into the Barak MX anti-aircraft system.

The Greek ALTUS LSA recently signed a strategic agreement with the American Shield AI for the integration of the Greek KMB Hunter system into the V-BAT unmanned aircraft. The cooperation provides for co-production, an increase in production capacity and the joint development of new operational capabilities, paving the way for international exports.

At the same time, ALTUS LSA is collaborating with the French MBDA for the development of the KERVEROS unmanned combat system, which combines the ATLAS 8 platform with the AKERON MP anti-tank missile, constituting one of the first European partnerships of a Greek company in the field of armed UAVs.

B&T Composites signed a Memorandum of Understanding (MoU) with the German Dynamit Nobel Defence, aiming at industrial cooperation in the development and production of advanced composites for defense applications, while examining the possibility of production in Greece.

GEK TERNA signed a binding strategic agreement with the German Rheinmetall for the development of industrial cooperation in Greece. The agreement provides for the transfer of know-how, the development of domestic production capabilities, integration, maintenance and support of land defense systems, with the active participation of Greek small and medium-sized enterprises in the supply chain.

At the same time, GEK TERNA signed a Memorandum of Understanding with Airbus Defence & Space, with the aim of developing solutions in the defense and space sectors. The cooperation focuses on military satellite communications, the protection of critical infrastructure and the transfer of know-how to the Greek industry, creating the basis for the development of national capabilities in advanced defense and space programs.

The Greek SCYTALYS signed an agreement with the Indonesian state-owned aerospace company PT Dirgantara Indonesia (PTDI) for the integration of the Greek MIMS Airborne mission system into the N219 and CN235 maritime surveillance aircraft, expanding its presence in the Asia-Pacific market.

The above collaborations, as well as several others that are in an advanced stage of discussions, reflect the new reality that is taking shape in the Greek defense industry.

The participation of Greek companies is no longer limited to sub-construction work, but extends to co-productions, transfer of know-how, development of critical technologies and integration into international value chains.

The Hellenic Dome and the new armament program function as accelerators of this transition, creating the conditions for more Greek companies to acquire an active role in the European and international defense industry.