**European Defense Industry Sees Triple-Digit Expansion Since Russia’s Invasion of Ukraine**
The Financial Times (FT) has reported a staggering expansion in European defense factories, with 7 million square meters of new industrial development since Russia launched its full-scale invasion of Ukraine in 2022. This growth is triple the speed seen previously, according to the news outlet’s analysis of satellite data.
As European countries scramble to strengthen their defense industries, both for their own security and to support Ukraine’s defenses against Russian aggression, these factories are working overtime to meet demand. The FT identified 7 million square meters of new industrial development at 150 facilities across 37 companies, mainly associated with ammunition and missile production.
**Hungary’s Varpalota Facility Leads the Way**
One of the most extensive expansions was recorded at the Varpalota facility in western Hungary, a joint project between Hungarian state defense company N7 Holding and German defense firm Rheinmetall. This site is set to produce ammunition for the KF41 Lynx infantry fighting vehicles, 155 mm artillery shells, and Leopard 2 tank ammunition.
Rheinmetall, Germany’s largest defense contractor, has seen its stock price surge a whopping 1,000% in recent months amid a defense spending drive following Russia’s invasion of Ukraine. The company has played a key role in producing arms for Kyiv and has even opened its first military vehicle factory in Ukraine last year, with plans to open four more defense plants in the war-torn country.
**EU Support Pours In**
The FT also identified expansions at 20 sites supported by the Act in Support of Ammunition Production (ASAP), an EU program that allocated 500 million euros ($580 million) for boosting ammunition production. Most companies declined to comment, citing security concerns.
Since the outbreak of full-scale war in Ukraine, the European defense industry has faced criticism for its slow and inefficient performance, with industrial bottlenecks hindering the speedy delivery of arms and ammunition to Kyiv. Efforts to boost defense spending gained fresh urgency after U.S. President Donald Trump’s return to office in January.
**NATO and EU Step Up Defense Spending**
The NATO summit in June saw allies agree to raise the defense spending benchmark from 2% to 5%, with military aid to Ukraine potentially counting toward the new goalpost. The EU has also unveiled its ReArm Europe program, aiming to raise an additional 650 billion euros ($750 billion) in defense spending and 150 billion euros ($170 billion) in loans for defense investments.
EU Defense Commissioner Andrius Kubilius said that member states can use these funds to provide Ukraine with weapons and invest in the country’s defense industry. As European countries work to strengthen their defenses, one thing is clear: the European defense industry will be working at breakneck speed to meet demand in the coming months.
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