In a significant move for European defence sovereignty, Spain’s Indra and the UAE’s EDGE Group have announced a strategic joint venture to establish a dedicated defence manufacturing company in Spain. The new entity will focus on the in-country development, production, and lifecycle support of advanced loitering munitions and smart weapons systems for Spanish and European armed forces.
The agreement, signed in Madrid and witnessed by senior Spanish government and industry officials, aligns with urgent European efforts to bolster its indigenous defence industrial base. The venture combines EDGE’s cutting-edge weapons technology with Indra’s established European manufacturing and systems integration expertise.
Subject to final board approvals, the company will create two new production centres. A drone manufacturing facility in Villadangos del Páramo, León, represents an estimated €20 million investment by Indra and will produce loitering munition systems, creating up to 200 jobs at full capacity. A second, cutting-edge micro-engine plant for unmanned aerial vehicles (UAVs) will be established in Valladolid, enhancing Spain’s technological sovereignty in critical aerospace subsystems.
This initiative directly addresses the European Union’s push for defence industrial autonomy and the rapidly escalating demand for advanced, scalable weaponry. By localising production, the partners ensure these systems meet European operational requirements and can be delivered at the necessary speed and scale.
Hamad Al Marar, Managing Director & CEO of EDGE Group, stated: “This marks a decisive step in EDGE’s expansion into Europe. We are enabling in-country manufacturing and responding directly to the scale and urgency of European defence requirements, while building long-term industrial capability with a trusted partner.”
José Vicente de Los Mozos, CEO of Indra Group, added: “Indra takes a decisive step in its ambition to become a European reference in the drone industry. This enables us to rapidly respond to the needs of the loitering munition market, a segment experiencing accelerated growth.”
The joint venture positions the new company as a key sovereign supplier within Europe’s defence ecosystem, with scope to expand into additional capabilities as future requirements evolve.
