DroneShield makes first Europe-built counter-drone unit

DroneShield has produced its first counter-drone system in Europe, marking the Australian company's first manufacturing output on the continent.

The initial batch was made through a contract manufacturing arrangement using a mainly European supply chain. The system matches the design of units built in Australia.

The expansion gives DroneShield a manufacturing base in Europe as governments across the region increase defence spending and seek to strengthen domestic industrial capacity. The local production line should help the company deliver equipment more quickly to European customers while providing a supply chain aligned with regional procurement priorities.

Counter-unmanned aerial systems, often known as CUAS, are designed to detect and respond to drone threats. DroneShield's European-built system is aimed at military and civilian users and can detect a range of unmanned aerial threats.

The move adds to the group's broader expansion in the region. DroneShield has already opened its European headquarters in Amsterdam as it builds its presence with NATO members and partner nations.

European governments and institutions have placed greater emphasis on defence manufacturing in response to rising security concerns and pressure to reduce reliance on external suppliers. DroneShield linked its new production line to that push, citing the European Union's Readiness 2030 framework, which is intended to strengthen industrial capacity and defence readiness across member states.

The company continues to support its Australian-made products through a predominantly Australian supply chain. By establishing a separate European production route, it is creating a regional manufacturing structure that can serve customers with different sourcing requirements.

This matters in defence procurement, where local content and security of supply often influence buying decisions alongside technical performance and cost. A European supply chain can also make it easier for contractors to meet national or bloc-level expectations around sovereign production.

DroneShield, which is listed on the ASX, focuses on counter-UAS technology using radio frequency sensing, sensor fusion, artificial intelligence and electronic warfare tools. Its products are used by military, government, law enforcement and critical infrastructure operators.

The company did not disclose production volumes for the first batch, but said the delivery of pilot units marks the start of a broader manufacturing expansion in Europe. Further growth in regional operations is expected as demand increases.

Regional push

The decision reflects a wider trend among defence and security suppliers to place more manufacturing and support functions closer to European customers. Since the war in Ukraine and a broader reassessment of security risks, many governments have pushed for faster replenishment cycles, more resilient supply chains, and more domestic or allied production.

For specialist equipment makers such as DroneShield, that can mean shifting from an export-led model to one that includes local assembly or contract production in key markets. It can also improve access to customers that prefer or require procurement from within Europe.

Chief Commercial Officer Louis Gamarra outlined the company's view of the move.

"This milestone reflects our commitment to supporting allied nations with locally produced, highly capable counter UAS systems. Customers in Europe can now access the same trusted DroneShield technology, built with a supply chain aligned to regional industrial priorities," said Louis Gamarra, Chief Commercial Officer, DroneShield.

He added: "This is just the beginning, as DroneShield expands its production capabilities into Europe. With a strong pipeline of next-generation products coming online, European customers can have confidence that these capabilities will be built and supported within the EU."

The first European-produced units come as demand for systems that can identify and disrupt drones continues to grow across armed forces, public security agencies and operators of sensitive sites.

DroneShield said the European-made products are intended to offer the same design and performance as its Australian-built systems while shifting manufacturing and sourcing closer to the end market.