DroneShield shares soar on new $13m production hub
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More news: DroneShield shares surged in early trading after the anti-drone company said it will commit $13 million to develop a new Sydney production facility.
Shares were up 7.6% to $2.98 at 10:50am AEST, having jumped over 11% at the open. They have climbed around 290% since the start of January, spurred on by a flurry of new contract wins.
DroneShield commits $13m to new Sydney production site
The news: Anti-drone technology company DroneShield will invest $13 million in a new Sydney production facility, to expand its R&D and manufacturing capacity following a spate of recent contract wins.
The numbers: The investment includes a 5-year initial lease and fit-out commitment for a new 3,000 square-metre production facility in Sydney, which is expected to open in December.
The new site will expand the company's annual production capacity to $900 million by mid-2026 as it targets a $2.34 billion global sales pipeline.
The context: The new facility is DroneShield's largest to date and more than three times the size of its current production floor near central Sydney.
The move follows multiple new contract wins for the company in recent weeks, including signing its biggest single order in June.
DroneShield has also announced a significant expansion into Europe, where it is planning to establish a "European Centre of Excellence", including a manufacturing and production facility to support domestic defence programs on the continent.
What they said: "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.
"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."
The source: ASX
