Awarding of contracts continues to be hesitant
Taurus manufacturer MBDA sounds the alarm
March 30, 2024, 5:33 a.m
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Ukraine has been defending itself against Russian aggression for more than two years. However, the federal government is still slowing down when it comes to awarding contracts to the defense industry. The Taurus manufacturer MBDA complains about this and warns of shortages of raw materials.
The arms company and Taurus manufacturer MBDA is pushing for faster federal decisions on orders to the industry. “We can do much better and faster here in Germany,” said the head of the German subsidiary, Thomas Gottschild, to the “Augsburger Allgemeine”. Despite improvements, there is still a lot of potential to procure defense equipment more quickly. The joint venture between Airbus, BAE Systems and Leonardo is, among other things, a producer of the Taurus cruise missile and Patriot anti-aircraft missiles.
Gottschild pointed out that Taurus missiles would no longer be manufactured because the defense industry was not allowed to produce stocks without orders. “It is a challenge for our industry when production is interrupted like with the Taurus,” said the manager. “In such cases, our suppliers, who are often small and medium-sized companies, have stopped production.” For new orders, suppliers would first have to reposition themselves and, for example, secure raw materials.
Given the high demand worldwide, there are bottlenecks, especially for raw materials for explosives. “The defense industry needs a base load in production,” said Gottschild. “It’s enough to make it worthwhile to maintain supply chains, keep testing equipment state-of-the-art and maintain the competence of employees.” As a positive example, he cited an order from several states for up to 1,000 Patriot missiles, which MBDA will produce in Schrobenhausen in collaboration with its US partner Raytheon. “We will deliver the first Patriot missiles within three years.”
“Taurus delivery is a political decision”
Whether Germany delivers Taurus missiles to Ukraine is a political decision. With a flight distance of more than 500 kilometers, the Taurus has “a great distance effect”. Something like this is needed by Ukraine to combat logistics chains and strategic goals. “Ukraine is currently covering its standoff capability with other weapons. However, from the Ukrainians’ point of view, the Taurus would be an important additional component in the current situation.” Chancellor Olaf Scholz rejects Taurus deliveries to Ukraine.
MBDA is not worried about skilled workers in Germany. “We’re getting the workers we need,” said Gottschild. “Last year we received an average of around 400 applications per month, and at the beginning of this year the number jumped to 800 per month.” Almost 1,000 of the approximately 1,200 MBDA employees in Germany currently work in Schrobenhausen. The number of jobs is expected to increase by around 300 by the end of next year.