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A Hunter loitering munition on show at Edge Group's Dubai Airshow stand.
United Arab Emirates' defense company Edge Group plans to build loitering munitions in Spain as part of a production partnership with Madrid-based defense and space supplier Indra.
Under the agreement, the two parties will create a joint business that will occupy a new drone manufacturing site in Leon, Spain, to address European demand, the companies said Jan. 13. Indra, whose shareholders still have to approve the deal, would invest up to €20 million ($23 million) to establish the site.
The deal builds on an earlier commitment to pursue the loitering munition market together agreed in November. State-owned Edge, which sells loitering munitions such as the Hunter-series of weapons, is teaming with a European business as a route to market at a time when countries there are emphasizing autonomy of supply.
The companies said they see a potential order pipeline valued at €2 billion over several years.
“By developing loitering munition capabilities in Spain, we are enabling in-country manufacturing and responding directly to the scale and urgency of European defense requirements, while building long term industrial capability with a trusted partner,” Edge CEO Hamad Al Marar said in the statement.
Indra has been working to rapidly expand its defense and space offerings to take advantage of rising European defense spending.
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