to what extent has the war in Ukraine revived the French defense industry?

A “war economy”. By launching this formula at the Eurosatory defense fair in June 2022, Emmanuel Macron intended to mobilize, in the face of the conflict which seemed to be taking hold in Ukraine. “This will force us to invest more for the States, to be more demanding with the industrialists [de défense]”then warned the President of the Republic, warning of “deep changes” to come in this area. Since then, France has supplied a quantity of arms, ammunition and military vehicles to its Ukrainian partner. Latest example: the delivery of long-range “Scalp” missiles, announced Tuesday July 11 by Emmanuel Macron from Vilnius (Lithuania). Equipment often taken from the stocks of the French army, and which must be replaced. Enough to fill the order books of many companies – and unlock major investments in the process.

To better understand the role of the Ukrainian conflict in this renewed activity, franceinfo toured the national defense industry, already mobilized on vast programs that sometimes date back ten years.

Cannons, shells and missiles to be provided urgently

After several months of silence, France has gradually lifted the veil on the military aid provided to Ukraine since February 2022. These deliveries thus concerned Mistral and Milan missiles, manufactured by MBDA; AMX-10 RC light tanks, to be replaced by a new type of tank in the French army. But also Caesar self-propelled guns, 18 of which have already been sent to Ukraine, and 12 others which will be by 2024. For these guns, like other equipment taken from the army’s stock, the State applies a so-called “replenishment” policy. In short: replace these missing weapons to the nearest unit, and this, as soon as possible.

“We are mobilizing significant resources to produce more and faster, in order to reduce our delivery times”, details to franceinfo the Nexter group, which assembles these guns, the cost of which is estimated at 5 million euros per unit. “Before the war in Ukraine, our industrial tool was sized to produce an average of two Caesars per month. Today, we are able to produce four per month, six by the end of the year”, continues a spokesperson for the group. By 2024, it is even an objective of “eight Caesar a month” which is targeted by Nexter, thanks to a halving of the manufacturing time.

For Nexter, “I‘war economy’ mentioned by President Macron “requires effort and risk-taking”. The group announces that it has already invested 150 million euros to build up stocks of raw materials, buy machinery and launch production by Caesar “without assigned customer”. “In addition, we recruit and train many operators in essential technical fields such as mechanical welding”explains the manufacturer, which has nine sites in France and three others in Europe.

This renewed activity also concerns ammunition, delivered in large numbers to Ukraine by France and its European partners. And more particularly the 155 mm shells, which kyiv needs against the Russian occupier. In the Hautes-Pyrénées, the Forges de Tarbes have been running at full speed for several months and are struggling to meet the demand for steel shell bodies. “To give you an idea, between 5,000 and 7,000 shells are fired in Ukraine every day. Our monthly capacity is around 5,000 at the moment”explained in early June to franceinfo its director, Anthony Cesbron.

While France, through the voice of the Minister for the Armed Forces Sébastien Lecornu, in an interview granted at the end of March to the Figaroannounced that she was counting “double” its shell deliveries and bring them to “2,000 units per month”the Forges de Tarbes are getting organized to keep pace and multiply their production by five in the coming years. “There are no more blacksmith schools in France and we have no choice but to train people internally, detailed Anthony Cesbron. So we hire people without qualifications, who we train on site.”

An unexpected increase in activity after “a trough phase”

To change gears and quickly meet demand, many defense manufacturers “however had some leeway”, explains to franceinfo general Jean-Marc Duquesne, general delegate of the Group of French land and air-land defense and security industries (Gicat). “We were, it is true, in a dip phase, particularly in terms of exports, he specifies, and we were lucky to have enough staff available [au début de l’invasion russe de l’Ukraine].”

After the Covid-19 pandemic, “who has caused component shortages”, recalls Jean-Marc Duquesne, the war in Ukraine has however caused “awareness” for this sector. “Our job now is to do everything to move from a just-in-time logic to a stock logic, by determining the stocks that we need the most”he summarizes.

As the General Delegate of Gicat reminds us, “the defense industry responds to the needs defined by politics”. And the new military programming law 2024-2030, voted on Thursday by Parliament, precisely highlights the strategic importance of stocks by allocating 16 billion euros to the production of ammunition. A “lesson” drawn from the Ukrainian conflict, which shows that “the volume of equipment is again becoming a decisive factor, as is the ability to last thanks to stocks and controlled logistics”argued the appendix report of the bill.

A sector already driven by large-scale programs

Before the outbreak of the Ukrainian conflict, “the previous military programming law already set a good axis and had allowed manufacturers to hire and increase their rates”, also notes Jean-Marc Duquesne. Among the major plans concerning the French army, we find in particular the “Scorpion” program, launched at the end of 2014 under the mandate of former President François Hollande, which concerns “armoured of the future”.

“Scorpion is the biggest program for the Army in the last forty years, it is more than major for us”, underlines to franceinfo the company Arquus, which notably produces the new Griffon and Jaguar vehicles, which are part of this program, in association with Nexter and Thales. Between the maintenance of “nearly 20,000 vehicles of all types” in the army, and this long-term program, Arquus has plenty to do apart from replacing equipment supplied to Ukraine.

Would the French defense industry then have finished with the “dip phase”at least for the next seven years covered by the new military programming? “We have to be careful, because we are facing extremely aggressive competitors”entrusts General Duquesne, who recalls that these manufacturers bet internationally, France being the world’s third largest arms exporter.

There remains a strategic question, raised both by the pandemic, the war in Ukraine and military programming: that of autonomy. “We obviously want to develop European partnerships, to work with Belgians, Luxembourgers, Swedes, assures Jean-Marc Duquesne. But we also need to relocate, to regain some sovereignty and avoid becoming dependent.” An example of this policy, explosive powder for 155 mm shells will again be produced in France by 2025, a first for nearly fifteen years, with the creation of a workshop in Bergerac (Dordogne) by the company Eurenco – whose order books are full “until 2027”.