DroneShield is expanding its manufacturing and R&D footprint with a $13 million investment aimed at scaling its production capabilities in Australia and abroad.
The Sydney-based defence technology company announced it will open a new 3,000-square-metre production facility in Alexandria by December 2025 – tripling the size of its current production floor.
The move forms part of a broader strategy to grow its total annual manufacturing capacity from $500 million to an estimated $2.4 billion by the end of 2026.
The expansion includes a 2,500-square-metre increase in R&D space at DroneShield’s headquarters, enhancing engineering and laboratory capabilities. Combined, the company will have more than 5,500 square metres of dedicated R&D space.
“In response to rising threats and multiple wars taking place across the globe, Australia’s allies are increasing investment in modern defence capabilities,” said DroneShield CEO Oleg Vornik.
“Our new facility in Alexandria will epitomise the value Australian engineering can bring to a changing geopolitical landscape,” he noted.
The $13 million outlay covers a five-year lease and fitout for the new facility and R&D enhancements. Unlike traditional defence manufacturers, DroneShield noted it does not require heavy machinery investments, as it leverages a largely Australian-based supply chain.
The new production facility will include in-house manufacturing, testing, and warehousing capabilities, while the current production floor will be repurposed for R&D.
The expansion follows a record-breaking run of international orders for DroneShield. In June, the company secured a $61.6 million contract in Europe – its largest single order to date – along with additional deals worth $9.7 million in Latin America and $11.7 million under a Five Eyes R&D agreement.
“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.
DroneShield is also planning contract manufacturing operations in Europe and the US to support growing demand, particularly in Europe where it intends to establish a European Centre of Excellence. This aligns with continental initiatives like the EUR800 billion ReArm Europe Plan and Readiness 2030 program.
With a $2.34 billion global sales pipeline and Europe flagged as its fastest-growing export market, DroneShield’s investment signals a strong commitment to advanced manufacturing both in Australia and internationally.
