France's military is undergoing significant changes as President Emmanuel Macron has announced a comprehensive rearmament strategy aimed at countering the threats posed by Russia. This move not only emphasizes the necessity for national defense but highlights the broader European response to increasing geopolitical tensions. Amidst this backdrop, French defense companies are gearing up for action, with notable examples including Europlasma and Delair, which have begun to play pivotal roles in this newly heightened military focus.
At the center of Macron's initiative is the aim for France and Europe to gradually achieve independence from U.S. defense provisions. The European Commission has presented an extensive plan involving around 800 billion euros intended for the rearmament of the EU. This funding aims to reinforce defense capabilities across member states, warranting France's proactive approach.
Among the companies leading this charge is Europlasma, located in Tarbes (Hautes-Pyrénées), recognized for its unique position as the only factory producing shell casings within France. The demand for Europlasma's products has surged immensely, with production tripling from previous years—reaching 160,000 shell casings by 2025. To support this upward trend, the Direction générale de l’armement allocated 4.1 million euros to Europlasma early this March, confirming earlier funding promises made by the Ministry of Armies.
Europlasma's stock has soared by over 140% within just one week due to this surge in production. This significant financial investment marks a turnaround for the company, which had teetered on the brink of bankruptcy before the conflict in Ukraine unfolded. To adapt to rising demands, Europlasma is also collaborating with automotive subcontractors, which may pivot from their traditional production lines to create shell casings, thereby contributing to the defense industry.
Another notable player is Delair, based near Toulouse (Haute-Garonne), which has swiftly transitioned from manufacturing civilian drones to producing military surveillance aircraft. Established 14 years ago to monitor railway infrastructures, the company has experienced mature growth, reportedly registering 20 million euros in turnover for 2024. Currently, around 100 Delair drones are actively deployed over Ukraine, monitoring Russian movements on the ground.
Echoing the military's need for enhanced intelligence-gathering capabilities, the French army has ordered 250 additional drones from Delair, following earlier contracts. Delair’s output has dramatically increased, necessitating the hiring of 60 more employees beyond the current workforce of approximately 100 people who already produce about 50 drones monthly. This surge not only highlights the industry's potential growth but also the urgent need for skilled labor to support this military expansion.
Parallel discussions about France's defense priorities have also emerged, underscoring the importance of strategic military investments. Amélie Rosique, discussing these imperatives on BFM Business, emphasized the urgent need for France to prioritize its military buildup to face the resurging threats from Russia, aligning with the broader shifts seen under Macron's leadership.
With tensions on the rise, it's evident the defense sector is undergoing transformative changes. From Europlasma's increased output of shell casings to Delair's rapid pivot to military drone production, the efforts signal France's commitment to enhancing its defense capabilities. The looming question remains—will these investments pay off as the geopolitical situation continues to evolve?