Ukrainian weapons manufacturer Fire Point to receive DKK 750 million from Denmark
Drone Industry
Denmark will provide DKK 750 million in state loan guarantees for the Danish branch of Ukrainian defence company Fire Point.
Denmark’s Ministry of Business and Competitiveness announced this.
The Ukrainian company’s production facilities were established in Southern Jutland last year.
The Danish state guarantee will enable the Ukrainian company to raise funds to launch serial production. Because of the full-scale war, obtaining a loan on standard commercial terms is currently impossible.
The financing will be provided through the Export and Investment Fund of Denmark (EIFO).
Production security and technology transfer
Denmark’s government was the first in the world to officially authorise the establishment of Ukrainian defence industry production facilities on its territory.
Locating defence enterprises outside Ukraine helps protect production lines from constant Russian missile and drone attacks and ensures a stable supply of critical weapons.
The partnership will also give the Danish military and local businesses access to unique Ukrainian technologies and combat experience gained in actual warfare.
None of Ukraine’s ten largest defence companies is state-owned.
The private defence sector has overtaken the state sector in delivery volumes, and most leading companies belong to the National Association of Ukrainian Defence Industries (NAUDI).
Earlier reports said that the government had expanded its support programme for Ukraine’s defence industry to scale up weapons production for the front.
Underground factories for the defence industry
Meanwhile, Ukraine’s Ministry of Defence is developing a comprehensive mechanism to attract private capital, developers and investors to build underground production facilities for defence companies.
Preferential leasing for the defence industry
Two more authorised banks, Oschadbank and Bank Credit Dnipro, have also joined the state programme offering preferential financial leasing at 5% for defence companies, initiated by Ukraine’s Ministry of Defence.
This expands opportunities for domestic weapons and military equipment manufacturers to obtain financing to replace equipment, modernise facilities and scale up production.
Other projects involving Denmark
Leading Ukrainian defence technology company TAF Industries and Danish company Upteko, which specialises in innovative drone technologies, signed a memorandum of intent during DALO Industry Days in Herning, Denmark.
