Defense firms expand production in Europe as DHL eyes Ukraine arms export routes
The global defense industry is expanding as companies invest in military production and infrastructure amid rising geopolitical tensions.
German logistics firm DHL is exploring opportunities to support Ukraine’s export of military equipment, according to a report by *Handelsblatt*. The company has inquired at a Polish arms fair about potential logistics routes, including via Romania and the Black Sea, to facilitate Ukraine’s growing arms exports. DHL has previously handled weapons shipments for Rheinmetall, as evidenced by a July labor court ruling in Leipzig that reinstated an employee fired for criticizing such transports.
In Lithuania, defense technology company RSI Europe announced plans to invest up to €50 million in expanding its production capacity for advanced defense systems in the Panevėžys district. The project, granted large-scale investment status by Lithuania’s Ministry of the Economy and Innovation, aims to create up to 40 new jobs, with 35% in highly skilled engineering and technical roles. CEO Tomas Milašauskas stated the investment would strengthen Lithuania’s ability to manufacture critical defense technologies at scale, positioning the country as a key contributor to Europe’s sovereign defense manufacturing capacity .
Additionally, Lithuania signed a cooperation agreement with U.S. defense technology firm Mach Industries to support its expansion in the country, the Economy Ministry confirmed on Friday .
In Germany, industrial shifts are underway as civilian manufacturers pivot to military production. A Volkswagen plant in Osnabrück, recently sold to Israeli investors, will now produce components for Rafael Advanced Defense Systems’ Iron Dome missile defense system. Meanwhile, a former Alstom rail factory in Görlitz, acquired by KNDS Deutschland, has transitioned to tank production, with the company reporting successful progress in June.
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