Stelios Kanavakis - Senior Defence Analyst

Hellenic Defence Systems (HDS) has been on track to sign new contracts, as Army Recognition has learned during Eurosatory 2016 in Paris. As part of the memorandum of understanding between Greece and its international lenders, the state company had to go through the implementation of a restructuring plan that would reduce its reliance on state support.

The Greek Undersecretary of Defence, Mr. Dimitrios Vitsas (3rd R), the Chief of the Hellenic Army Lt. General Vasilios Tellides and the Managing Director of HDS Admiral (ret) Kosmas Christides (4th L), at the Hellenic Pavillion in Eurosatory 2016 (Photo: Hellenic MoD)

It was agreed that HDS would close two out of its five factories according to the memorandum signed in 2014 with the troika of lenders. Nevertheless, given that it carries out a full-scale production of ammunition, the management had decided to retain one of the factories and its production lines for the time being.

Despite the dire economic situation and the capital controls in the Greek banking system, the company managed to secure additional contracts and deliver its products. These allowed it to further consolidate its position in the international ammunitions market. Most importantly it has become a key partner for many regional clients in a period of political instability.

HDS has a series of ongoing programmes for the delivery of a second batch of 2,320 FNH Minimi 5.56mm machine guns, 40x53mm grenades for the H&K GMG automatic grenade launcher and other ammunition to the Hellenic Army.

The company signed in 2014 a strategic agreement with ATK for the production of 30mm ammunition for the Apache helicopters, of the 40L60 ammunition (for USAF) and the development of five other programmes. These are:

• the co-production and marketing of 40x53mm HV ammunition to the US market;
• the production of various parts for ATK’s artillery systems production and the support of its customers in the region;
• the provision of 30mm ammunition casings for the Apache gun given that HDS is now a certified provider;
• the co-production of 30x173mm ammunition for the international market and
• the co-production of 20mm ammunition for the international market as well.

After the upgrade of the Skyguard III - “Velos” (Arrow) GBAD system of the Hellenic Air Force, HDS has acquired through an offset programme the know-how for the production of AHEAD ammunition.