Photo: Storm Shadow missile
European defence company MBDA, the manufacturer of the Storm Shadow/Scalp and Aster missiles, is facing deep structural problems that prevent it from rapidly increasing production amid record demand. This was reported by the Financial Times.
Despite plans to double its output in 2024 and an order book of €37 billion (almost 7 years’ worth of work), the company is unable to keep up with the pace of deliveries. The reasons are inefficient production processes, poor infrastructure, and complicated logistics between factories in France and Italy. For example, the Asterrocket goes through several stages of assembly in two countries, which significantly slows down the production cycle.
MBDA CEO Eric Beranger admits that the company must adapt to a “wartime economy” in which speed and volume play a major role. However, reform attempts are being resisted by the French and British governments, which fear a loss of influence in the trilateral project. The group’s owners – Airbus (37.5%), BAE Systems (37.5%), and Leonardo (25%) – also have different priorities, which complicates strategic decisions.
“These problems would be easy to solve if we were a regular company. But we are a transnational defence group that has to serve several armies at once,” Beranger said.
Despite the challenges, MBDA is investing €2.4 billion until 2028, in particular to simplify the production of Aster missiles, which contain more than 10,000 components. Over the past two years, it has managed to reduce production time from more than three years to around two. However, the limits of acceleration are already visible.
To increase its autonomy, the company is buying up critical suppliers – in 2023, MBDA acquired Roxel, a manufacturer of solid fuel engines.
Analysts note: The MBDA remains a unique example of European defence cooperation, but its ability to respond quickly to the challenges of the times is questionable.
