Financial Times journalists analyzed the activities of 37 defense companies in Europe and concluded that about a third (33%) of the plants they inspected are currently undergoing expansion or construction.
While in 2020-2021, the new production space amounted to about 790,000 m², in 2024-2025 this figure more than tripled to 2.8 million m².
The €500 million EU program has become a catalyst
The main driver of this process was the Act in Support of Ammunition Production (ASAP) initiative launched by the European Union with a budget of €500 million. Its goal is to overcome the critical shortage of ammunition and missiles, in particular to support Ukraine.
Thanks to the program, the annual production of ammunition in the EU has increased from 300 thousand to 2 million units. Companies that are actively increasing their capacity include Rheinmetall, N7 Holding, BAE Systems, and MBDA..
Missiles for air defense and a new generation of weapons
In 2025, MBDA increased the production of Aster surface-to-air missiles by 400% compared to previous forecasts. This is especially important amid growing demand from European armies and an acute shortage of missiles for Ukraine’s SAMP/T air defense systems.
At the same time, France and the United Kingdom began joint development of a new generation air-to-air missile to replace the Meteor.
Poland plans to create one of the largest armies in Europe
Against this backdrop, military buildup is also taking place in Eastern Europe. Poland’s Ministry of Defense has announced its intention to form an army of more than 500,000 people.
Today, the Polish Armed Forces have more than 210,000 soldiers, and it is planned to increase this number to 230,000 by 2025.
Changes in Europe’s defense industry are taking place against the backdrop of Russia’s full-scale war against Ukraine and the need for allies to quickly adapt to new threats. Increasing production capacity, launching new lines, and modernizing plants are becoming key elements of the EU and NATO defense strategy.