Paris, France – More than three years after the war in Ukraine began, France is significantly accelerating its defence industry in response to growing geopolitical tensions and the European Union’s push for strategic autonomy.
With an increase in public orders and new investments, the country is positioning itself as a key player in Europe’s military-industrial complex.
On Thursday, Minister of the Armed Forces Sébastien Lecornu and Economy Minister Éric Lombard will mark a major milestone with the inauguration of Eurenco’s new plant in Bergerac.
The site will relocate the production of 1,800 tonnes of artillery powder per year from Germany, Italy, and Sweden to France.
Eurenco, a major supplier of military-grade explosives and propellants, has seen its sales double since 2022, with a fully booked order list extending until 2029.
France’s defence budget is also set to rise sharply in the coming years, reaching €67.5 billion by 2030—up from €50.5 billion this year.
President Emmanuel Macron has repeatedly underscored the need for a “significant” increase in public orders to strengthen the country’s military-industrial base.
While this is welcome news for defence manufacturers, concerns remain over long-term funding sources.
Connecting Defence Stakeholders
French defence firms, both large and small, are experiencing an influx of government contracts. Some companies that traditionally operated outside the defence sector are also pivoting to meet the rising demand for military equipment.
“I was contacted by the Ministry of Defence in November 2021 to manufacture bullets for the special forces,” said Olivier Lacreuse, president of Plubeau & Cie, a company that previously specialised in precision metalwork for the railway industry.
“Two models of our bullets have been approved, and we opened our new factory last Monday, but I am still struggling to secure my supply of raw materials.”
Lacreuse’s situation highlights the ongoing supply chain challenges faced by France’s defence industry. Currently, the company imports cartridge cases from the United States but is looking for domestic suppliers due to geopolitical instability affecting global trade routes.
To better align industry capabilities with government needs, stronger communication between defence stakeholders is essential.
“Companies need to be made aware of the Ministry of the Armed Forces’ requirements,” said Jean-Michel Jacques, an MP from Ensemble pour la République and chairman of the National Assembly’s Defence and Armed Forces Committee.
Beyond bolstering domestic production, the rise in defence spending is also creating opportunities for struggling industries to transition into military manufacturing.
The Fonderie de Bretagne, a foundry previously making spare parts for Renault, is being taken over by the French group Europlasma. The company plans to manufacture 24,000 metal casings for artillery shells daily, helping to sustain jobs in the Lorient region.
France’s Strong Export Performance
France is not just ramping up domestic defence production but also strengthening its position as a major arms exporter. In 2024, the country’s defence exports reached €18 billion—its second-highest total ever, surpassed only by 2022.
As global conflicts escalate and relations between Europe and the United States become more complex, more countries are turning to France for military equipment.
Dassault Aviation, Safran, and Thales—three of France’s largest defence contractors—have all reported strong financial performance in 2024, largely due to international sales.
The Rafale fighter jet, submarines, drones, missiles, and Caesar howitzers remain in high demand.
Meanwhile, smaller firms are also capitalising on the growing market. RTSYS, a company specialising in underwater acoustics and robotics, now generates nearly 90% of its revenue from exports to Europe and Asia.
“We anticipate strong growth in our business over the coming years,” said François-Xavier de Cointet, director of RTSYS.
“With rising tensions in the South China Sea and recent attacks on Baltic Sea cables, everyone is realising the need to monitor underwater infrastructure.”
Thinking at the European Level
While France is bolstering its own defence capabilities, European collaboration remains a key aspect of its strategy. On Wednesday, the European Commission unveiled an €800 billion defence investment plan, which will be financed through loans and debt mechanisms.
The initiative aims to enhance Europe’s collective defence capabilities while reducing reliance on American military support. Jean-Michel Jacques, the French MP, stressed the importance of coordinating defence production at the continental level.
“Contrary to what some may think, cooperation in defence manufacturing will actually help grow the French industry,” he explained. “We can easily imagine French groups setting up factories in other European countries, just as foreign companies could establish themselves in France.”
Currently, the European defence industrial and technological base accounts for 33% of global arms exports, with significant American involvement through European subsidiaries.
However, some analysts warn that national rearmament efforts by individual European states could lead to increased industrial competition, potentially weakening the EU’s collective defence strategy.
“The possibility of a national rearmament by European states leading to increased industrial competition and a weakening of the EU’s collective capabilities should not be ruled out,” wrote Samuel B. H. Faure, a political science lecturer at Sciences Po Saint-Germain-en-Laye, in Le Grand Continent.
Challenges and the Road Ahead
Despite the surge in investment, challenges remain. The French defence industry still faces issues related to raw material shortages, supply chain disruptions, and bureaucratic inefficiencies in procurement. Additionally, while the defence budget is set to increase, questions persist about long-term funding sustainability.
The need for a steady, secure supply of materials is becoming more apparent. For instance, French ammunition manufacturers have long relied on American-made cartridge cases, a dependence that may become untenable in times of crisis. Finding European alternatives will be crucial to ensuring stable production levels.
Moreover, France’s decision to move artillery powder production from Germany, Italy, and Sweden to Bergerac highlights a broader trend of reshoring critical military manufacturing. While this move strengthens France’s autonomy, it also raises concerns about how such shifts will impact European defence cohesion.
As France continues to expand its defence sector, its ability to balance national interests with European coordination will be a determining factor in shaping the continent’s military landscape.
Whether this growth will translate into a more self-reliant and resilient Europe remains to be seen, but for now, France is taking bold steps to ensure its defence industry is fit for the challenges ahead.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members
