It is estimated that up to 80 million euros can be raised by the EU for the financing of the Hellenic Defence Systems (EAS). The said amount, to be used in the production of the 155 mm rounds, derives from the allocation of European funds aiming to strengthen the European defence industry, based on the increased needs for defence material, resulting from the war in Ukraine.

The decision comes after the visit of the Commissioner for Internal Market of the EU, Thierry Breton, to Greece last Friday.

The European Commission has decided to allocate more than 500 million euros to increase the production of ammunition in order to help Ukraine and replenish the stockpiles of EU member-states. The plan requires the approval of governments and the European Parliament to be realized. The money will be given through the European Defence Fund.

If such an agreement is implemented, it will be substantial liquidity for the Hellenic Defence Systems. According to open sources, the group’s turnover in 2021 amounted to 6 million euros, with damages amounting to 85 million including taxes. But even in 2020 the turnover, although higher, only reached 16.4 million, again with losses equal to 129 million. It thus becomes clear that securing the project will significantly strengthen the financial situation of the company.

European Commissioner, Thierry Breton, was in Greece as part of an informal tour of a total of eleven EU countries, which took place to examine and evaluate the possibilities of utilizing existing defence industry facilities to boost ammunition production, in order to offset the needs but also the shortages that have arisen due to the war conflict in Ukraine.

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Mr. Breton, accompanied by the Minister of National Defence, Nikos Panagiotopoulos, and a technical team from the EU, visited the Hellenic Defence Systems, where a presentation was made of the company’s production capabilities, especially regarding the manufacture of 155 mm rounds. Subsequently, the European delegation visited the EAS facilities in Ymittos and Lavrio.

Specifically in terms of the Lavrio unit, the European delegation assessed that all the conditions for the production of the rounds are met.

In fact, as the Greek company reports, the complex in Lavrio, Attica is active in the loading and assembly of medium- and large-caliber ammunition, bombs, anti-tank and missile warheads, in the production of launchers and the assembly of anti-tank missiles and finally in the production of propellant gunpowder, while it has been certified by NATO as a Missile Assembly Disassembly Facility (MADF) and is one of the few worldwide to carry this certification.

From the Greek side, in addition to securing funding for the strengthening of the defence industry and its essential inclusion in European plans to achieve as much autonomy as possible for the EU in the production of defence equipment, it is estimated that there are prospects for a substantial modernization of the production units of Greece.

Thus, in the framework of Breton’s visit, information was given on the production possibilities, but also their significant strengthening, since the EU will assist in the strengthening and upgrading of the infrastructures of EAS.

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