EU gives €60-80m to fund Hellenic defense systems

As part of the moves to strengthen the European defense industry, based on the increased need for defense equipment resulting from the war in Ukraine, Hellenic Defense Systems (EAS) will, sources say, receive €60-80 million in funding from the European Defense Fund to increase production of 155mm projectiles.

The same sources said the decision was taken during the recent visit of EU Internal Market Commissioner Thierry Breton, when it was assessed that the facilities at Lavrio meet the requirements for immediate inclusion in the network of defense equipment production units that the EU will use to meet the increased needs created by the war in Ukraine.

This agreement, if implemented, will be a valuable and generous injection of liquidity for EAS and the production plant at Lavrio.

Indicatively, the group’s turnover in 2021, the last year for which there are published figures, was some €6 million, with a loss after tax of €85 million. But in 2020, turnover, although higher, was only €16.4 million, also with a loss (-€129 million).

Therefore it is clear that securing a project of even €60 million can significantly strengthen the company’s financial situation.

Breton, who was accompanied by Defense Minister Nikos Panagiotopoulos and an EU technical team, visited EAS and was given a presentation on the company’s production capabilities, particularly with regard to the manufacture of 155mm projectiles. The European delegation also visited the facilities of EAS in Ymittos and Lavrio.

Sources with knowledge of the details of the visit said particular interest was shown in the Lavrio plant, where the European delegation assessed that the conditions, the combination of infrastructure and know-how, for the production of the missiles are up to par.

According to the Greek company, “the Lavrio Attica complex is active in the priming and assembly of medium- and large-caliber ammunition, bombs, anti-tank and rocket warheads, the production of launchers and the assembly of anti-tank weapons and finally the production of propellant powders. It has been certified by NATO as a Missile Assembly/Disassembly Facility,” and is one of the few in the world to hold this certification.

For Greece, in addition to securing funding to strengthen the defense industry and its substantial integration into European plans to achieve as much autonomy as possible for the EU in the production of defense equipment, there are prospects for substantial modernization of the production units in Greece.