MEVACO is advancing in the defense equipment production sector, with the aim of further strengthening and substantially expanding its presence in this sector in order to exploit its prospects.
According to the announcement by the listed company, the management has decided to construct a new autonomous industrial building with a total area of approximately 6,000 sq.m. on a privately owned plot of land of the company, adjacent to its existing production facilities.
It also decided to procure and install within this new industrial plant the necessary technical facilities and mechanical equipment, with the aim of strengthening the defense systems production sector, so that it can more easily respond to the increased demand that this sector presents. The products produced by the defense construction department are intended primarily for defense systems manufacturing companies abroad (missile systems, tanks, decoys, surveillance vehicles, etc.).
Equity
The value of the investment amounts to approximately 10 million euros, and its cost will be financed mainly with the company’s own funds, while the time horizon for the implementation of the entire investment depends on the completion of all relevant studies and the subsequent issuance of the necessary administrative permits and is estimated at a period of 12 months, from the fulfillment of the above conditions.
The company pointed out that this new investment is in line with its broader strategic plan for the targeted upgrade and expansion of its production capacity in the defense equipment production sector.
The listed company is already productively active in the defense sector, having concluded significant agreements with both NAVAL and Intracom Defence. Specifically, according to the 2024 annual financial report, within the framework of MEVACO’s cooperation with the French company “NAVAL GROUP” and the Framework Agreement for the manufacture of metal equipment for the BELHARRA frigates, orders of approximately 3.76 million euros have already been received and are being executed, the outstanding balance of which amounted to 0.53 million euros on 31.12.2024.
This Framework Agreement has an initial duration of five years and governs all orders placed by the French company.
It is noted that during the current fiscal year 2025, MEVACO is in the process of negotiations and preparing offers for the further continuation of the above cooperation in the construction of new frigates that will be built both for Greece and abroad. At the same time, within the framework of MEVACO’s long-term cooperation with “INTRACOM DEFENSE ELECTRONICS”, the existing relationship between the two parties was expanded with the preparation of a new agreement of 5.7 million dollars and a duration of approximately 24 months for the construction of metal parts of defense systems with an export orientation.
After the new contract, the total outstanding balance of the Company towards “INTRACOM DEFENSE” amounted to 10.10 million euros on 31.12.2024.
