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Sydney counter-drone developer DroneShield has announced it will commit $13 million towards research and development, as well as manufacturing capacity expansion.
The expansion includes a new dedicated 3,000 square metres of own production space, an addition of 2,500 sq m to the research and development area in its headquarters for engineering and lab space.
DroneShield declared the $13 million initial investment via a multi-year lease and fitout commitment into the new 3,000-sq m production facility in Sydney’s Alexandria, with expected opening in December this year.
The new facility, including advanced in-house production, testing and warehousing capabilities, is the company’s largest to date and more than three times the size of its current production assembly floor near central Sydney. The existing production assembly floor will be converted into an additional research and development area for the company, resulting in a 5,530-sq m total research and development area.
“In response to rising threats and multiple wars taking place across the globe, Australia’s allies are increasing investment in modern defence capabilities,” DroneShield chief executive officer Oleg Vornik said.
“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.
“Our new facility in Alexandria will epitomise the value Australian engineering can bring to a changing geopolitical landscape.
“Interest in working in defence had been declining over decades of peace. But we are seeing a rise in national pride as tyrants attempt to change the world order, and that’s translating to an uptick in younger staff seeking opportunities and adding real and timely value to Australia’s defence efforts.”
Together with planned expansions to its Australian contract manufacturing and plans to set up contract manufacturing in Europe and the US, the current $500 million annual manufacturing capacity is estimated to expand to $2.4 billion by the end of 2026.
The expansion in Australia is concurrent with DroneShield’s European and US manufacturing initiatives against the backdrop of record global demand.
The announcement follows a $61.6 million European contract in June, the biggest single order in DroneShield’s history, followed shortly by a $9.7 million Latin American contract and an $11.7 million Five Eyes research and development contract.
In 2024, exports accounted for 91 per cent of the company’s existing facilities.
