DroneShield commits $13 million to research and manufacturing expansion

DroneShield announced on Monday a $13 million investment in a significant research and development and manufacturing capacity expansion, including new dedicated production space three times the size of its current facility.

The company will establish a new 3,000 square metre production facility in Sydney's Alexandria, with an expected opening in December 2025. It will also add 2,500 square metres to the research and development area in its headquarters for engineering and lab space.

Together with planned expansions to its Australian contract manufacturing and plans to set up contract manufacturing in Europe and the US, the current $500 million annual manufacturing capacity is estimated to expand to $2.4 billion by the end of 2026.

The $13 million amount refers to five years of initial lease commitment as well as the fit-out cost for its expanded research and development area and the new production facility.

The new facility, including advanced in-house production, testing and warehousing capabilities, is DroneShield's largest to date. The current production floor will be converted into an additional research and development area, resulting in a 5,530 square metre total research and development area.

Chief executive Oleg Vornik said the expansion came in response to rising threats and multiple wars taking place across the globe, with Australia's allies increasing investment in modern defence capabilities.

“We are stepping up to meet this demand by investing in state-of-the-art facilities here and abroad, and in sovereign Australian skills development to provide the most modern and effective counter-drone capabilities in the world,” Vornik said.

The announcement follows DroneShield receiving a $61.6 million European contract in June, the biggest single order in the company's history, followed by a $9.7 million Latin American contract and an $11.7 million Five-Eyes research and development contract.

Picture: credit DroneShield