Greece’s state-owned defense manufacturer, Hellenic Defence Systems (EAS), has launched an international tender to modernize and commercialize its artillery shell and cartridge-case production facilities, marking a significant step in the country’s effort to attract private investment into its defense-industrial base amid surging global demand for munitions.
The tender, announced on Wednesday, seeks a strategic investor that will finance the upgrade of existing production equipment and facilities, assume responsibility for operating and expanding the business, and manage the commercial exploitation of future output. The process will be conducted through a competitive dialogue procedure, with EAS aiming to select either a single investor or a consortium capable of revitalizing one of Greece’s most strategically important defense-manufacturing activities.
As part of the plan, production would be relocated to EAS’s industrial complex in the western Greek city of Aigio, creating a consolidated manufacturing hub focused on large-caliber ammunition components and small-arms cartridges.
The initiative comes as European governments and defense contractors race to expand ammunition production capacity following Russia’s invasion of Ukraine and amid broader efforts by NATO members to replenish depleted stockpiles. Against this backdrop, EAS is seeking private capital to modernize critical infrastructure while preserving domestic manufacturing capabilities considered essential for national security.
Under the proposed arrangement, the selected partner would bear both the investment costs and the operational risks associated with the facilities, with returns tied to future production revenues. Bids are due by July 22, 2026.
According to people familiar with the matter, the preferred structure under consideration would involve the creation of a joint venture in which EAS would retain a controlling 51% stake, while the investor would hold the remaining 49% and finance the relocation, modernization and expansion of the production units in Aigio.
Among the companies that have reportedly expressed interest is India’s Kalyani Group, a major industrial and defense conglomerate with operations spanning steelmaking and defense manufacturing. The group maintains an international industrial footprint with facilities in Germany, Sweden and China, employs roughly 10,000 people and generates annual revenue approaching $3 billion. People familiar with the process said company representatives have already visited the EAS facility in Aigio.
Defense companies from Israel, the Czech Republic and Germany are also understood to be evaluating participation in the project.
If the tender results in a final agreement, the newly formed joint venture would relocate EAS’s shell and cartridge-case production activities to Aigio and begin manufacturing large-caliber metal shell bodies as well as ammunition for small arms. The project is expected to strengthen Greece’s role within the European and global defense supply chain at a time when ammunition production capacity has become a strategic priority across the continent.
