Authors: Max Hender and Daniel Flynn
April 6 (Reuters) – Ukrainian Flamingo cruise missile manufacturer Fire Point is in talks with European companies to launch a new air defense system next year to create a low-cost alternative to the increasingly difficult-to-obtain Patriot system, a senior executive told Reuters.
As the war in Ukraine and Iran creates global instability and governments seek to defend their skies, Denys Shtilierman, co-founder and chief designer of Fire Point, said the goal is to cut the cost of intercepting ballistic missiles to less than $1 million.
Shtilierman also said Fire Point was awaiting government approval for an investment from a Middle Eastern conglomerate that would value the company at $2.5 billion and would open the door to new business opportunities, including low-orbit satellite launches.
Ukraine’s years of expertise on the battlefield fighting Russian forces have made Ukraine a leading innovator in low-cost defense technology. With the outbreak of the Gulf War, Kyiv used this expertise to sign security agreements with governments in the region.
Many Ukrainian defense companies are now looking to export excess capacity and profit from a surge in global military spending. Although the government has recently eased wartime export restrictions, each proposed deal is still subject to rigorous inspections and state approval.
Developing alternatives to the Patriot system
Ukraine and many other Western allies rely heavily on the U.S.-made Patriot system to stop ballistic missiles.
But with the widespread deployment of Patriot missiles in the Gulf in response to Iranian attacks, the supply of Patriot missiles has become increasingly scarce. The only anti-ballistic system in Europe, the Italian-French SAMP/T, is produced in relatively small quantities.
To shoot down ballistic missiles, the Patriot system, built by Raytheon Co. and Lockheed Martin Corp., typically requires two or three anti-aircraft missiles, each costing millions of dollars, Stiliman said.
“If we can get it down to less than $1 million, it will… be a game changer for air defense solutions,” he said in an interview. “We plan to intercept the first ballistic missile by the end of 2027.”
Stiliman declined to name the European companies involved in discussions to develop the new system, but said Fire Point was “very interested” in cooperation on radars, missile target hunting and communications systems, areas in which Fire Point lacks expertise.
He pointed out that European companies including Weibel, Hensoldt, SAAB and Thales have good radar solutions.
Fire Point, founded in the wake of the 2022 Moscow invasion, is Ukraine’s largest manufacturer of long-range drones, which are used in most attacks in Russia.
In recent months, its FP5 long-range cruise missile, commonly known as the Flamingo, has also been used to attack Russian military facilities and military factories, including a ballistic missile factory nearly 1,400 kilometers (870 miles) inside Russia.
Stillman said Firepoint is currently in the final stages of developing two supersonic ballistic missiles.
The smaller FP-7 missile, which has a range of about 300 kilometers, will undergo its first military deployment “in the near future,” he said, describing it as similar to Lockheed Martin’s ATACMS short-range ballistic system.
He added that the larger FP-9, capable of carrying an 800 kilogram warhead and having a range of up to 850 kilometers, was about to enter testing and would put Moscow within range of Ukraine’s ballistic weapons arsenal.
Stiliman said an attack on Moscow, which is surrounded by some of the world’s most powerful air defense systems, would lead to “a huge shift in the thinking of Russians and high-level Russians.”
The Russian Defense Ministry did not respond to a request for comment.
Fabian Hofmann, a missile expert and senior fellow at the Norwegian Defense University College, said that while Russia has experience successfully shooting down anti-tank missiles, a more widespread use of ballistic missiles could weaken Russia’s air defenses, which are already weakened by attacks in Ukraine.
Although Fire Point’s goal of launching a low-cost air defense system in 2027 is “ambitious,” he said that in addition to Ukraine’s own military needs, governments will also have strong demands, even if its kill rate per missile is not as good as that of the Patriot missile.
UAE investment may launch satellite business
Shtilierman said Ukraine’s antitrust agency must make a decision around October on a $760 million proposal by a Middle Eastern investor to acquire a 30% stake in Fire Point.
Ukrainian media has identified the acquirer as UAE defense company Edge Group. Edge Group and Ukrainian antitrust authorities did not respond to requests for comment.
The investment will be the first step in a project to build a space launch station in the UAE, with the aim of eventually establishing a low-orbit European satellite constellation. Shtililman said that the country is adjacent to the Indian Ocean and its geographical conditions are conducive to space launches.
“We built a carbon winding machine that allows us to wind a large solid rocket booster for satellite delivery,” he said, noting that the project is still in the conceptual stage, although agreements have been reached “with several Western companies.”
Shtilierman said that regardless of whether the deal with the UAE goes ahead, Fire Point will not take on more investors until its missile defense system, which will use the company’s FP7 missiles, is successful. .
Fire Point, meanwhile, has received interest from Gulf states to purchase its existing drone products and is awaiting approval from the Ukrainian government to begin exports. Shtilierman said the company has the capacity to export up to 2,500 long-range drones per month.
However, he said exporting the Flamingos would be much more difficult due to regulatory hurdles.
Fire Point said it produces hundreds of long-range attack drones a day, which cost about 50,000 euros ($57,775) each, and three Flamingo missiles, which cost about 600,000 euros each. He admitted there were some “bottlenecks” in the Flamingo, including engine production.
Fire Point will increase Flamingo production when a new in-house engine enters series production in October and a rocket fuel plant in Denmark comes online later this year, he said. The plant is awaiting two final approvals from Danish authorities.
(1 USD = 0.8654 Euro)
(Editing by Joe Barwell)