METLEN Energy & Metals has approved a €50 million investment for its fourth defence equipment manufacturing facility in Volos, Greece, marking another significant step in establishing the country as a key player in European defence production. The new facility, set to begin operations in the first half of 2027, will create 200-250 new jobs and produce components for Leopard 2A8 battle tanks.

The investment builds directly on partnerships announced at DEFEA 2025, Greece's premier defence exhibition held in Athens from May 6-8, 2025. During the exhibition, METLEN showcased two major strategic alliances that form the foundation of its expanding defence capabilities.

The first partnership with KNDS France involves exclusive production rights for the VBCI PHILOCTETES infantry fighting vehicle. This collaboration includes technology transfer for aluminium armour welding and local production of the VBCI Mk2 welded structure. The partnership represents the first time the French defence leader has signed such an ambitious agreement for 8x8 armoured vehicles.

The second partnership with IVECO Defence Vehicles focuses on tactical truck production for personnel transport and combat equipment. According to IVECO CEO Claudio Catalano, this alliance aims to provide "military trucks 'Made in Greece'" to the Greek Armed Forces, with 40% of new vehicles manufactured in Volos.

The fourth facility represents a crucial component of the METLEN Technologies Hub, an integrated defence industrial complex that will ultimately comprise five plants. The new 10,000 square meter facility will feature five heavy machining tools and specialized equipment for advanced defence production.

METLEN Chairman and CEO Evangelos Mytilineos emphasized that this investment fulfills commitments made during the company's Capital Markets Day in April 2025, stating: "All units will form an interoperable European-scale Defence Hub, capable of simultaneously executing multiple programs for the production and support of heavy weapon systems".

This development carries implications for both Greece and European defence autonomy. Greece has emerged as a vocal advocate for EU strategic autonomy, with Prime Minister Kyriakos Mitsotakis pushing for looser fiscal constraints to allow member states to bolster security without breaching EU debt ceilings. The country currently spends over 3% of GDP on defence, ranking among the highest in NATO.

The Volos defence hub represents a significant contribution to Greece's reindustrialization strategy. The historic Volos plant, established in 1963, has evolved into a specialized facility with 100% export-oriented production over the past two decades. METLEN has been a trusted partner to KNDS Deutschland for 23 years, already handling shield welding for Leopard 2 main battle tanks; Upon completion, the defence hub is expected to employ approximately 1,000 skilled workers, providing a substantial boost to the local economy. The facility will enhance Greece's position on the European defence industry map while contributing to the continent's strategic independence.

The timing of METLEN's expansion coincides with heightened European focus on defence autonomy as the EU's Strategic Compass and Defence Industrial Strategy emphasize the importance of localized defence production and industrial self-sufficiency. Through its partnerships with IVECO and KNDS, combined with the expanding Volos facilities, METLEN is positioning Greece as a critical node in European defence manufacturing.

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