German, Ukrainian defence firms join forces to make drones

BERLIN: A German drone maker and a Ukrainian defence tech start-up announced Monday they are forming a joint venture to mass-produce unmanned aerial vehicles for the Ukrainian military.

Since Russia’s 2022 invasion of Ukraine, drones have become a crucial part of the conflict and both sides have ramped up production.

Quantum Systems, based in the southern German state of Bavaria, and Ukrainian company Frontline Robotics will make the drones in Germany.

The Financial Times reported the deal was worth 100 million euros ($118 million), and that the companies want to produce 10,000 drones next year at a new factory in southern Germany.

The project will “establish Europe’s first fully automated, industrial-scale foreign production line for drones for the Ukrainian armed forces”, the firms said in a statement.

The new venture, called Quantum Frontline Industries, will make “battlefield-proven, multi-use drones” developed by Frontline Robotics, according to the statement.

Quantum Systems will provide industrial infrastructure and production operations while the Ukrainian firm will contribute designs and training.

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“Together with Frontline Robotics, we will build on our proven experience and create Europe’s first foreign production capacity at this scale for Ukraine,” said Sven Kruck, co-CEO of Quantum Systems, in a statement.

Yevhen Tretiak, CEO of Frontline Robotics, said the joint venture would produce “thousands of drones to drive back the Russian aggressor”.

The deal was announced as Ukrainian President Volodymyr Zelensky and US envoys held talks in Berlin aimed at ending the war. A Ukrainian-German business forum in Berlin brought together companies from both countries.

Berlin also released a 10-point plan Monday aimed at boosting cooperation between the German and Ukrainian defence sectors.

Proposals included promoting joint ventures, federal investment guarantees, and stepping up efforts to integrate the Ukrainian industry into the wider European defence sector.

“A strong Ukrainian defence industry… is an important element of security guarantees to deter future Russian aggression,” the plan said.

“Cooperation between the German and Ukrainian defence industries is becoming increasingly important in this context.”