The CEO of MBDA (Europe’s largest missile manufacturer) has urged EU decision-makers to ensure the UK is included in the new strategy for the bloc to develop its defence industry, as the region seeks a response to increasing geopolitical tensions.
Eric Beranger stated that, even though the UK left the EU on January 2020, it was still a part of the “geographic Europe”.
In an interview, he said that geography is important when it comes to defence.
Beranger said that the defence Industrial Strategy proposed by the European Commission “could be yet another opportunity to broaden the framework of defense co-operation and to consider a particular regime with the UK”.
MBDA was created in 2001 through the merger of UK, French, and Italian defence assets. BAE Systems and Airbus each own 37.5 percent, while Leonardo, Italy, holds the remaining balance.
MBDA is hailed as one the few successful cross-border defence alliances in Europe. It builds advanced missiles for all three branches of the armed services. It manufactures long-range missiles, such as the Franco British Scalp/Storm Shadow and Meteor the next-generation Air-to-Air missile. Together with Saab of Sweden, its German arm produces the Taurus missiles for Germany, Spain, and South Korea.
Beranger made his comments after Brussels published last week a proposal for a first EU strategy for the sector. It has encouraged everything from joint purchasing to giving priority to EU-based defense companies over non EU suppliers.
The EU initiative will now be subject to suggestions by member states who must give their final approval. Defence companies are intensifying their lobbying on the rules and objectives and how they will operate in practice.
Emmanuel Macron, the French president in particular, has pushed the EU to favor weapons manufactured in the EU to reduce the long-standing tradition of purchasing US-made equipment.
According to those briefed about the discussions, UK officials also had preliminary discussions with senior Brussels officials in order to argue that British companies should not be excluded. People briefed on the conversations said that the commission was not against a broad definition of “European” goods.
Beranger added that it was important to define “European Made” in the new strategy. To define “procured in Europe”, it would be important to ensure that the “design authority” – the company or organization able to change and evolve a product’s design – is located in the region.
MBDA, like other defence companies, has seen an increase in orders since Russia invaded Ukraine in 2022. It has also been racing to boost production as a response.
According to the financial results released on Wednesday, revenues increased to €4.5bn from €4.2bn a year ago. Orders were €9.9bn up from €9bn a year earlier. This was largely due to a significant order for cruise missiles from Poland, which will be used in the country’s air defence system. €2.4bn is being invested between 2023 and 2028.
Beranger acknowledged that MBDA took time to increase its production capacity after years of low military budgets.
The group is aiming to increase production of the Mistral short range missile to 40 per year from 10 missiles per month.
It has been particularly difficult to retool the supply chain and build up more stocks because missiles may include around 10,000 components from a variety of smaller companies.
Beranger said that the industry needed to readjust following 35 years of’so-called peacedividends’ during which time it managed to maintain technological capabilities, despite budget shrinkage, but “at the cost of extending delivery times”. The Ukraine conflict was a “wake up call”, as time is no longer available.
If you haven’t worked out in 10 or 30 years and you have lost muscle, you can start working out tomorrow. . . But it does not mean that you will instantly rebuild your muscles.
He said that MBDA was adapting to these changes in order to be battle-ready.