MBDA aims to bolster missile production, adding 2,600 jobs amidst European defense boom

The armament conglomerate MBDA, primarily specializing in missile weapon production, aims to increase production capacities and hire an additional 2,600 people. Over the course of six years, it plans to invest £2.06 billion ($2.64 billion).

"The challenge we currently face lies in continuing to adapt to the changing environment while developing cooperation, especially at the European level," said MBDA CEO Eric Béranger during the Wednesday earnings conference in Paris. This conglomerate's shareholders include Airbus (holding 37.5%), BAE Systems (37.5%), and Leonardo (25%).

"We want to be ready to act when clients ask for new military requirements to be met. We aim to help ensure their national sovereignty in a global environment where the law is challenged by forceful solutions," Béranger announced.

"MBDA forecasts the future and adapts quickly. That's why it's increasing production capabilities, significantly accelerating the manufacture of Akeron MP, Aster, Brimstone, CAMM, Enforcer, Exocet, MICA, and Mistral missile systems and missiles," the conglomerate states in a press release.

As calculated, in 2023, it has executed large contracts for France, Italy, Germany, the United Kingdom, Spain, Greece, Sweden, and Poland. In the case of our country, it involves a large contract for the supply of CAMM missiles.

"MBDA is preparing for war-time production to support sovereignty," the company declares. The conglomerate, which currently employs about 14,000 people, intends to invest £2.06 billion ($2.64 billion) in the years 2023-2028. Just this year, it plans to hire an additional 2,600 workers.

The war in Ukraine has triggered a boom in the European armaments industry, which is likely to last a long time, commented the British weekly "The Economist" last September.

In February 2024, a cornerstone was laid for a new ammunition factory by Rheinmetall in Germany. The Niedersachsen plant will produce artillery ammunition, explosives, and rocket artillery elements.

The investment, worth £258 million ($330 million), is funded by Rheinmetall without government subsidies. The factory will employ about 500 people. The construction is expected to last 12 months.

At the beginning of March, the European Commission called on the European Investment Bank (EIB) to change its policy this year and start financing projects in the defense sector. This is a component of the first-ever EU strategy for the defense industry published in March.

NATO Secretary-General Jens Stoltenberg in mid-February announced that in 2024, 18 countries will spend at least 2% of their GDP on defense. He added that since 2014, European NATO members and Canada have increased defense spending by a total of £487 billion ($600 billion).

Poland is currently allocating 4% of its GDP to defense, which is twice the current recommended level for NATO countries.

However, the trend of increasing expenditures is visible among countries close to Poland - recently pointed out by the WNP service. In 2024, Lithuania's defense spending will amount to 2.75% of GDP, and next year, according to the declaration, it is expected to reach 3%. Romania wants to have the second largest army in the region after Poland. For the first time in thirty years, Germany also presented NATO with plans for defense expenditures exceeding 2% of the gross domestic product.