Greece should do more to channel defense spending toward domestic industry, Metlen Chairman and CEO Evangelos Mytilineos said on Tuesday, arguing that closer cooperation between the armed forces and Greek manufacturers would strengthen both the economy and the country’s defense capabilities.
Speaking at the inauguration of the fourth factory in Metlen’s M Technologies defense hub in the central Greek city of Volos, Mytilineos welcomed a government proposal that would require Greek companies to participate in at least 25% of defense procurement programs.
The proposal, put forward by Prime Minister Kyriakos Mitsotakis and Defense Minister Nikos Dendias, is moving in the right direction, he said. Mytilineos suggested that bids offering a higher level of Greek industrial participation should receive additional consideration during the evaluation process.
The Metlen chief said the new facility forms part of a broader industrial strategy that links the company’s activities in energy, metals, recycling and defense production.
“Here in Volos, we have a fully integrated factory capable of carrying out demanding international defense projects,” he said.
Mytilineos argued that recent geopolitical developments have pushed security back to the forefront of government policy and increased the importance of maintaining a strong manufacturing base.
“Countries with production capacity are more resilient and better positioned to respond to changing circumstances,” he said.
He also called for a closer working relationship between the armed forces and domestic industry, pointing to what he described as successful models in countries such as the United States, Germany and France.
“The armed forces set out their requirements and industry delivers the solutions,” he said.
According to Mytilineos, Greek taxpayers expect defense spending to be used effectively, while domestic manufacturers should be able to compete by offering Greek-made products without compromising on quality.
€150 Million Support Program
Development Minister Takis Theodorikakos used the event to announce a new €150 million support package for the defense industry under Greece’s development law.
The program, due to be launched on July 15, will provide enhanced depreciation incentives for investments in the sector.
The minister also highlighted a number of major industrial projects backed by the government, including Metlen’s investment in gallium production.
Dendias: Defense and Industry Must Work More Closely
Defense Minister Nikos Dendias said Greece faces two parallel challenges: maintaining its security and addressing the country’s current account deficit.
He argued that stronger links between the armed forces, the Defense Ministry and Greek manufacturers are necessary if the country is to keep pace with technological change.
Without that interaction, he said, the defense sector risks falling behind in innovation and new technologies.
Vassilis Tsiamis, chief executive director of M Technologies, said demand for defense manufacturing capacity has increased significantly in recent years, both in Europe and internationally.
He said the company aims to expand its production capabilities in Volos and position the site as a platform capable of supporting multiple international defense programs in cooperation with European and global partners.
Source: ot.gr
