Thales increases its production of 70 mm missiles as Europe attempts to rearm.

The inauguration of the new 70 mm rocket production line at Thales Belgium comes a few months after Belgian Defense Minister Ludivine Dedonder signed a letter of intent expressing her support for an increase in Thales' ammunition production activities.According to a Thales press release dated July 1, the higher production rates "will allow for a quicker response to the ammunition needs of armed forces," with the 70 mm NATO standard rocket currently being used in Ukraine.
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Ukrainian Crew loading 70mm rockets  in rocket pod on a MI-24  (Picture source: Ukraine Armed Froces)

Thales manufactures the 70 mm NATO standard rocket, whose production power will be multiplied by five. Credit: Thales
As the sole manufacturer of the 70 mm rocket in Europe, Thales Belgium has hired additional personnel and restructured elements of its supply chain to increase its production capacity from 1,000 to 5,000 units by 2025.

“The expansion of the 70 mm rocket production line responds to rapidly growing international demand, as well as defense needs, due to a concerning global security situation,” Dedonder said.

Thales is not the only European defense group increasing its ammunition production in 2024, with MBDA announcing in March that it would accelerate the manufacture of its Enforcer missile under the ASAP program.

Europe seeks to boost its defense industrial production

Given the type of ammunition expenditures observed in the ongoing war between Ukraine and Russia, it has become evident that European armies are ill-equipped to conduct such operations, particularly due to a lack of ammunition stocks.

In March, the European Commission allocated 500 million euros under ASAP to help the continent's defense industry increase its ammunition production, with the goal of producing two million artillery shells per year by the end of 2025. Combined with additional programs, this represents a total funding of 2 billion euros for military munitions.

When determining the funding structure, the European Commission stated that ASAP projects covered five areas: explosives, powder, shells, missiles, and certification of testing and refurbishment. According to the European Commission, the annual European production capacity of 155 mm shells reached one million per year in January 2024.

In December 2023, European Commission President Ursula von der Leyen boasted that European countries had provided nearly 500,000 artillery rounds to Ukraine since 2022, but this represented less than 50% of the one million 155 mm artillery shells promised to Ukraine by March 2024.

European Commission President Ursula von der Leyen calls on EU member states to rearm and strengthen their defense production. Credit: European Commission
Ammunition expenditures in high-intensity conflicts, a geopolitical state that many in the West mistakenly believed was consigned to history books, are forcing countries to rearm and bolster their stocks.

According to GlobalData's analysis in its report "Thematic Intelligence: Scaling Rearmament (2024)," Russia, at the height of its offensive operations, is expected to fire between 40,000 and 60,000 munitions per day on the front lines in Ukraine.

Initially considered a last-minute concern, defense industrial capabilities and ammunition replenishment have become the determining factor of contemporary operations, a situation in which Europe is still struggling to catch up.