The effort to link new defense procurement programs with the Greek defense industry is shaping up to be one of the biggest business ventures of the coming years, with Greek and foreign conglomerates vying for a share of projects worth billions of euros.
At the center of this is the government’s goal of ensuring that domestic industry participates in at least 25% of new defense procurement programs, a provision that—according to market observers—is gradually changing the model by which Greece approaches defense procurement.
The issue is now high on the agenda of the government and business groups, with the discussion focusing on the Greek defense ecosystem’s capacity to absorb a significant portion of new investments in European defense.
Defense Minister Nikos Dendias has repeatedly stated that the goal is for every new major defense procurement contract to include substantial Greek participation, both in production and in technical support and maintenance.
At the same time, he has emphasized that the Greek defense ecosystem could secure projects worth over €10 billion through new European defense programs and increased military spending in Europe.
According to market sources, the key point is that, for the first time, the participation of Greek industry is not limited to the logic of traditional“offset benefits.” Instead, there is an effort to link it to actual production, co-production, know-how, and long-term system support.
The new strategy covers a wide range of activities:
- electronic systems,
- software,
- optics and sensors,
- drones and anti-drone applications,
- military vehicles,
- shipbuilding projects,
- as well as maintenance and follow-on support services.
The market estimates that the big “game” will be decided over the next two years, as European initiatives such as SAFE, EDF, and ReArm Europe are launched, while geopolitical developments are driving EU member states toward increased defense spending.
THEON, EFA, ELVO, and METLEN in the spotlight
One of the most notable examples is Christian Hatziminas’ THEON International, which has evolved into one of the strongest Greek defense groups in the field of night vision and optical systems.
The recent acquisition of an 80% stake in MERIO SAS is considered a strategic move to further strengthen the company’s presence in the European defense industry.
According to announcements, MERIO is expected to generate revenue of over €15 million and EBIT of over €3.5 million in 2026.
Market analysts estimate that THEON is attempting to transform itself from a specialized manufacturer of night vision systems into a broader European “player” in defense optics, sensors, and surveillance technologies.
Increased activity is also being observed around EFA GROUP, which is strengthening its position in aviation systems, electronics, and surveillance technologies, while it recently acquired 90% of Superior Air.
At the same time, ELVO is upgrading its partnerships with Rheinmetall and MAN for military trucks and special-purpose vehicles, with the market anticipating a potential boost to domestic industrial production of military vehicles and subsystems.
The moves by METLEN in the defense industry and strategic metallurgy are also drawing particular interest. The market believes that the company’s investments in critical metals, gallium, and industrial production are directly linked to the new European strategy for technological and defense autonomy.
Shipyards, drones, and technology
There is also significant activity in the shipbuilding sector. Salamis Shipyards’ participation in the construction of sections of the French FDI frigate “Amiral Louzeau” was presented as the first time a foreign-flagged vessel has carried sections built in Greece.
Panos Xenokostas’ ONEX also remains on the business radar, with the market closely monitoring its moves in both the shipbuilding sector and defense systems support operations.
At the same time, significant activity is also emerging among smaller Greek defense tech companies.
Developments surrounding drones, artificial intelligence, cybersecurity, and anti-drone technologies have increased the interest of foreign conglomerates and investment funds in Greek companies with specialized expertise.
According to market executives, the following are expected to intensify in the coming period:
- strategic partnerships,
- joint ventures between Greek and foreign companies,
- as well as acquisitions of smaller technology companies by larger defense conglomerates.
The Big Question
Despite the sector’s momentum, market players point out that the key challenge remains the Greek defense industry’s ability to transition from a subcontracting role to substantial high-value-added production and an export-oriented focus.
As they note, the current juncture is considered pivotal, as Europe is now seeking greater strategic autonomy in the defense sector, while geopolitical developments are bringing the defense industry back to the forefront of European industrial policy.
SOURCE: APE-MPE