DroneShield triples production capacity with new headquarters in inner Sydney

DroneShield triples production capacity with new headquarters in inner Sydney

Photo supplied by DroneShield

Military defence technology group DroneShield (ASX:DRO) has opened a new headquarters in Sydney, tripling its manufacturing capacity to deliver more than $400 million in hardware and software per year as the company scales up to meet a global sales pipeline that currently stands at more than $500 million.

The new facility, which also expands the company’s research and development capabilities, has been funded by an upsized $105 million capital raising announced in April.

Droneshield develops a range of defence devices from handheld detection and defeat systems to its DroneSentry-X Mk2 which facilitates both the detection and takedown of drones.

The company has contracts for 90 projects with various governments and defence alliances globally including the US military and NATO, and it is currently fulfilling $27 million in orders.

“The threats that drones can pose are finally being taken seriously,” says Oleg Vornik, the DroneShield CEO.

“Whether it’s due to the turmoil they can cause on the battlefield, or the countless ways they can disrupt everyday life – at airports, prisons and public events, for example – drone deterrence is now a priority for government agencies and authorities, in Australia and abroad.

“We are seeing a major push for comprehensive counter-drone and counter-UAS (unmanned aerial system) capabilities – predominately from the US, but broadly across Five Eyes and allies, and slowly but surely in Australia.”

However, Vornik notes that the sophisticated equipment produced by DroneSheild and the AI-based technology it uses can take up to four months to build. Defence systems can have up to 200 components that must be manufactured, assembled and quality controlled.

“Supply chain and inventory certainty is critical, and we are leveraging funds from the $115 million capital raise to enable us to create upwards of $400 million in equipment per year – all within Australia, at the new facility, as a truly sovereign defence supplier – for global customers that expect high performance equipment to be available right away,” says Vornik.

The new headquarters is located in Pyrmont in inner Sydney where the company’s 120 local staff are based. At 2,000sqm, the facility is triple the company’s previous headquarters.

DroneShield says there is more space available for expansion, while also being equipped to handle commercial applications for its technology at airports, stadiums and events.

The company also plans to scale up its high-tech engineering and operations teams, with 40 employees set to be added in the short term.

DroneShield last month announced a $5.7 million contract with a US Government customer for a number of its CUxS (Counter-UxS) systems.

This came on the heels of the company announcing a tenfold increase in revenue in the March quarter to $16.5 million. This figure is close to DroneShield's revenue for the entire year of 2022.

 

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