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European missile maker MBDA has been fielding more inquiries from the region’s militaries, as countries consider reducing their reliance on US-made weapons.
Chief executive Eric Béranger said since the start of the year, he was having more discussions with countries, which he declined to name, amid fears that Washington is withdrawing from its traditional role as Europe’s ultimate security guarantor.
“We are being consulted by countries who historically were always relying only on American capabilities and who are now coming to us and consulting us,” he said in an interview.
Best known for making the long-range Storm Shadow/Scalp cruise missiles that have been used in Ukraine, MBDA manufactures a range of missiles used on air, land and sea primarily for the French, British, and Italian armies, and others.
The company is one of the few truly cross-border defence companies in Europe, and is owned by Britain’s BAE Systems and Airbus, which hold 37.5 per cent respectively, and Italy’s Leonardo, which holds the balance.
“The acts and declarations of US officials are creating uncertainty in the minds of various heads of states about how much and how far they can rely on the US as an ally,” Béranger said.
His comments came as MBDA reported 2024 year-on-year revenue growth of 9 per cent to €4.9bn, while its order book more than doubled from 2021 before the war in Ukraine to a record €37bn. It has been pushing to increase production, as have other European defence companies, but the process has been slow because of complex manufacturing, supply chains and hiring needs.
US President Donald Trump’s hardline approach to Ukraine and insistence that Europe carry more of the burden of its own security has spurred the region’s governments to accelerate plans to build up national capabilities. Germany is planning massive spending on defence, while the EU commission has proposed €150bn of new loans and a relaxation of the bloc’s caps on deficits freeing up national governments to spend up to €650bn.
Canada and Portugal have in recent days signalled they are willing to consider alternatives to the US-made F-35 fighter jet. Canada in 2023 agreed a contract with Lockheed Martin to purchase up to 88 jets although it has so far committed funds for just 16 aircraft. Portugal’s air force had recommended purchasing F-35 jets but the country’s outgoing defence minister said last week it could not ignore the geopolitical environment.
In Europe, many countries have for decades also relied on Raytheon’s battle-proven long-range Patriot air defence system, including Germany, Poland, Belgium and Spain.
In part due to the Patriot’s established global network of customers, the first generation of MBDA’s rival land-based system called the SAMP-T struggled to penetrate the market and was only bought by France and Italy, who bankrolled its creation. A naval version of the system, also used by the UK, has been more successful.
Béranger said the new model of the SAMP-T set to come to market next year would have better commercial prospects, helped by the diplomatic backdrop.
MBDA was already in discussions with Denmark and Belgium over the new SAMP-T system, said people familiar with the matter, where it is competing against the Patriot. Winning such a contract would be an achievement for France and Italy, who have lobbied European allies to buy it.
In an effort to wean Europe off from US weapons, the EU commission is working on rules for its lending programme that would set quotas to prioritise weapons made by companies from the region. But member states do not agree on how these regulations should work — France is pushing to exclude US arms manufactured under licence in Europe, an idea that Germany and the Netherlands oppose.
Béranger said beyond quotas, it was important to “have the mindset to be more European”, adding that the so-called design authority — the company or organisation that creates and can modify a particular weapon — should reside in Europe. This would exclude products made under licence in Europe, although MBDA has begun work on a facility in Germany that will build the Patriot under licence from Raytheon.
Having control over the Storm Shadow programme allowed MBDA to quickly adapt the missiles to fit on Ukrainian fighter jets. “If we had been manufacturing under licence, we would have had to ask the US for permission,” Béranger said.
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