European defense enterprises are demonstrating unprecedented growth in production volumes amid the ongoing war between Russia and Ukraine. Analysis of the activities of 37 leading defense companies in Europe has shown that about one-third of factories are actively expanding their production areas or are in the process of constructing new facilities. While in 2020–2021 the expansion covered 790,000 square meters, by 2024–2025 this figure has reached 2.8 million square meters.
This is reported by Finway
EU Invests in Increasing Ammunition Production
A key factor in this rapid development has been the European Union’s program Act in Support of Ammunition Production, which has a budget of 500 million euros. Its goal is to eliminate the shortage of ammunition and missile production, which is particularly relevant in light of the military confrontation in Ukraine. As a result, the production volumes of ammunition in EU countries have increased from 300,000 to 2 million units per year.
Rapid Expansion of Defense Giants and Launch of New Projects
Among the main companies expanding their capacities are Rheinmetall, N7 Holding, BAE Systems, and MBDA. In particular, the missile manufacturer MBDA was able to increase the production of surface-to-air Aster missiles by 400% in 2025 compared to previous estimates. This was a response to the rising demand from European armies and the acute shortage of such missiles for Ukrainian SAMP/T air defense systems.
“Ammunition production in the EU has increased from 300,000 to 2 million per year. Currently, companies such as Rheinmetall, N7 Holding, BAE Systems, and MBDA are expanding. For instance, MBDA has accelerated the production of surface-to-air Aster missiles, achieving a 400% increase in production by 2025 compared to previous forecasts. This production growth is occurring amid demand from European military forces and a severe shortage of missiles for Ukrainian SAMP/T air defense systems.”
Additionally, French and British developers plan to create a new air-to-air missile to replace the existing Meteor model, which will enhance the effectiveness of Europe’s air defense.
In Poland, the government is also focusing on strengthening defense capabilities: the country’s Ministry of Defense intends to form an army of over 500,000 personnel. Currently, the number of the Polish Armed Forces exceeds 210,000 servicemen, and by the end of the year, this number is expected to increase to 230,000.