© Arnaud Serexhe
Luxembourg's defence sector is gaining momentum as companies like North Defence and LUXUAV expand local production of armoured vehicles and drones for Ukraine, but amendments to Luxembourg's weapons legislation are necessary to allow the production of combat drones.
Luxembourg is preparing for a renewed presence of defence-related companies on its soil, but changes to the national weapons law will be required first. The government says around 75 firms in the country already produce, directly or indirectly, material used by the armed forces, so far under the condition that these are not lethal weapons.
During a recent visit to Luxembourg by Ukraine's prime minister, Denys Shmyhal, the clear message was that Luxembourg has supported Ukraine since the start of the Russian invasion and that helping to finance military equipment is important. Until now, most equipment and weapons have been bought abroad. Officials want to change that so that, where possible, Luxembourgish industry benefits from supplying Ukrainian needs. Defence Minister Yuriko Backes visited two local firms that supply Ukraine last week as part of these efforts.
High-spec vehicles for Ukrainian units
The British firm North Defence has recently opened its European headquarters in Steinsel's industrial zone. Historically active in the UK for 15 years building fire and rescue vehicles, the company added armoured ambulances to its portfolio after the Russian invasion of Ukraine. North Defence is now moving into a new production phase in Steinsel, producing heavy, high-technology vehicles intended for front-line Ukrainian units in difficult conditions. The company plans to manufacture three such vehicles per week in an initial phase.
North Defence founder and CEO Oliver North says the company is launching a major recruitment drive aimed at both skilled workers and apprentices. He stressed the firm's intention to nurture the next generation of local craft talent and to have a positive impact on the local economy. He also confirmed that all patents for the vehicles are registered in Luxembourg and that the designs were developed to meet the demands of the modern battlefield.
Drones "Made in Luxembourg"
LUXUAV, which specialises in the design, development, and manufacturing of Unmanned Aerial Vehicles (UAVs), supplies drones to Ukraine and has expanded strongly in recent months. It began with the production of dual-use drones that, after upgrades in Ukraine, have been used by the military as kamikaze systems and are currently playing an important role on the front lines in the Donbas region.
LUXUAV CEO, Nicolas Zharov, explains that current production capacity sits at about 1,000 drones per month depending on the model, and the company aims to reach a capacity of 10,000 drones per month by 2027. He also says the firm is broadening its product range and planning to manufacture key components locally in Luxembourg.
The company's next development stage will focus on reconnaissance drones, and plans are under way for a collaboration with the University of Luxembourg to develop so-called interception drones. A new production hall is due to be inaugurated in January, after which production will move toward partial automation.
Legal hurdles remain
So far, finished combat drones are not being produced in Luxembourg because the necessary authorisations are not in place. Industry representatives and officials agree that amendments to Luxembourg's weapons legislation are a prerequisite for any further expansion into combat systems and for allowing wider defence manufacturing to take place domestically.
