A Strategic Alliance for Ammunition Production

Given the current circumstances driven by geopolitical situation, global defence needs are changing rapidly, the JV will be well-strategically positioned to respond promptly and effectively to the market demand mainly driven by government institutions.

The business cooperation between HDS and MSM GROUP is not only about meeting current market requirements but also securing any potential future demand in the defence sector and bringing Greek defence industry back to high level of independence.

Increasing the production capacity at the Lavrio facility will play an important role in combining defense supply chains with the ability to promptly react to both immediate and long-term needs incl.the supplyy of critical ammunition and its components.

By achieving above mentioned goals, the JV will play a vital role in strengthening the defence capabilities of both Greece and the EU/NATO member countries with allies. Our efforts will ensure that EU/NATO defence forces will be adequately supplied with high-quality and reliable ammunition, which is important for maintaining security and stability in the region.

In a conclusion, the objective of the JV is to revitalize defence technology, optimize production processes, expand capacity, and most importantly, provide a robust response to the growing and changing defence needs of Greece and the European Union.

The Lavrio facility, under the current management of HDS, contains great business potential, however, facing some production challenges caused by technological limitations and outdated equipment.

The proposed JV aims to tackle such obstacles mainly from a business, CAPEX and production perspective. The plan involves a comprehensive refurbishment plan and revamping of the facility’s machinery and technology, transforming it into a modern and efficient production site.

A key aspect of JV is the optimization of production processes at the Lavrion plant as well as an option of running factory as a private subject with ability to accept decisions in hours together with flexibility in HR policy, unfortunately both aspects are currently affecting whole HDS negatively. By integrating MSM GROUP’s expertise in efficient manufacturing processes, we intend to streamline operations, reduce production bottlenecks, and enhance overall output quality. This optimization will involve a systematic review and overhaul of existing production lines, ensuring their alignment with current standards and practices in ammunition manufacturing.

The expansion and modernization of the plant in Lavrion as part of the JV is expected to have a significant positive impact on the local and national economy. This project is expected to create a significant number of new job opportunities, covering a wide range of specializations such as ammo production technicians, admin and supporting roles. We are already aware of a potential in cooperation with local universities which could be promising partnership for the R&D programs also.

The creation of these new jobs will stimulate economic growth in the local area and beyond, not affecting only Lavrion region but also the wider supply chain, including logistics, material supply and various services. The increased workforce will contribute to higher consumer spending in the region and further boost the local economy.

The JV is committed to the highest standards of environmental responsibility and safety as further described. The modernization of the Lavrion plant will include the implementation of advanced technologies that are not only more efficient, but also more environmentally friendly. This includes adopting manufacturing practices that minimize waste, reduce emissions and comply with the strictest environmental regulations.

In terms of safety, the project will focus on implementing new safety protocols to protect the workforce and the surrounding community. This includes better staff training, investment in safer equipment and strict adherence to international safety standards. This JV will ensure that operations at the Lavrion plant are not only productive but also sustainably and safely managed.