DroneShield Expands Sydney Operations with $13 Million Investment in Counter-Drone Technology Facility

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Australian defence technology firm DroneShield has announced a strategic expansion of its manufacturing and research capabilities through a $13 million investment in a new facility located in Alexandria, Sydney. This move reflects the company’s response to increasing global demand for counter-drone technologies and its broader ambition to scale operations both domestically and internationally.

DroneShield

The new 3,000-square-metre production site is expected to open in December 2025 and will triple the size of DroneShield’s current production floor. The investment includes a five-year lease and fit-out costs, and is part of a larger plan to raise the company’s total annual manufacturing capacity to $2.4 billion by the end of 2026. In parallel, the existing facility will be repurposed into a 5,530-square-metre research and development hub, enhancing the company’s engineering and laboratory capabilities.

DroneShield’s expansion follows a series of significant international contract wins, including a $61.6 million deal in Europe-its largest to date-as well as additional agreements in Latin America and with the Five Eyes alliance. These developments suggest a growing reliance on counter-drone technologies amid evolving global security challenges. The company has also indicated plans to establish a European Centre of Excellence to support regional defence initiatives such as the EUR800 billion ReArm Europe Plan.

The Alexandria facility will feature in-house testing, production, and warehousing capabilities. Unlike traditional defence manufacturers, DroneShield does not require heavy machinery investments, relying instead on a largely Australian-based supply chain. This approach may offer flexibility in scaling production and adapting to shifting geopolitical demands.

DroneShield’s CEO, Oleg Vornik, has framed the expansion as a response to rising threats and multiple conflicts worldwide, noting that allied nations are increasing investment in modern defence capabilities. He emphasized the importance of sovereign Australian skills development and the role of domestic engineering in addressing contemporary defence needs.

Exports currently account for 91 percent of DroneShield’s operations, positioning the company as a contributor to Australia’s Future Made in Australia initiative. The firm’s global sales pipeline, valued at $2.34 billion, highlights Europe as its fastest-growing export market. This international orientation is further supported by plans for contract manufacturing in Europe and the United States, aimed at fulfilling regional orders more efficiently.

The announcement also touches on broader social dynamics, with Vornik noting a rise in interest among younger Australians in defence industry careers. He attributes this trend to increased national pride and a desire to contribute to Australia’s defence efforts amid global instability.

DroneShield’s investment in the Alexandria facility represents a calculated effort to align its operational capacity with emerging defence requirements. By expanding its footprint in Sydney and planning additional facilities abroad, the company is positioning itself to meet the growing demand for counter-drone solutions in a rapidly changing security landscape.

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