Filenews 14 January 2023 - by Andri Daniel
Gone is the traditional defence industry, which is gradually being replaced with state-of-the-art innovative systems, with the potential for major disasters in the era of hybrid warfare. What did the war in Ukraine teach us? What about Cyprus? Do we have a defence industry? How is this evolving? Answers are given to "F" by the president of the Cyprus Association of Research and Innovation Companies, Dr. Tasos Kounoudis.
Is there a defence industry in Cyprus? How is this differentiated through innovation?
The traditional defence industry we all knew, with its giant companies and complex and expensive defence systems (weapons and non-weapon) is changing dramatically. The main reason is the huge cost of acquiring, using and maintaining such systems, but also the rapid development of modern technologies, such as microelectronics, robotics and artificial intelligence, which enable the development of modern innovative alternative defence systems that can largely be built with commercial materials. The war in Ukraine is tangible proof of this rapid change in the defence industry, since relatively cheap innovative systems, such as unmanned aerial or sea vehicles, portable anti-tank or anti-aircraft systems, wandering ammunition or kamikaze ammunition, and portable electronic warfare systems, have in many cases neutralised expensive weapon systems, such as tanks, fighter planes, helicopters and warships;
Today in Cyprus there is a dynamic, innovative and rapidly growing Cypriot defence industry, which has developed high-tech infrastructure, specialized know-how and international collaborations, which are very important for our country. Around 30 innovative Cypriot technology companies are active in the defence industry, which mainly design, produce and export dual-use products, i.e. products that can be used for both military and peaceful purposes. In fact, in the last three years, Cypriot companies have achieved extremely significant successes with their participation in design and co-production programs of the next generation of European defence systems in cooperation with the largest defence industries in Europe. Cypriot companies active in the defence industry are members of the Cyprus Association of Research and Innovation Enterprises (KSEEK), which supports and promotes the defence industry in Cyprus.
What is the importance of the domestic defence industry, on an island that has been under occupation for 48 years?
It is not only important, it is absolutely necessary. The benefits from the development of the Cypriot industry are multiple on an operational, economic and geopolitical level. Operationally, the domestic defence industry can meet short- and long-term operational needs of the National Guard by contributing significantly to its self-sufficiency. Economically, the expensive imports of defence equipment can be transformed through industrial cooperation into an important pole for the development of the competitiveness of our economy, while geopolitically, the Cypriot defence industry can contribute significantly through its active successful placement in the wider European defence industrial area.
The contribution of Cypriot companies to the development of European defence systems.
The Cypriot defence industry has been participating with great success since 2019 in the programmes of the European Defence Industrial Development Programme (EDIDP) and since 2021 in the programmes of the European Defence Fund (EDF). These programmes fund European consortia for defence research, design, development and industrialisation of new innovative European defence products, supporting the competitiveness of the European defence technological and industrial base in the international market.
Cypriot companies have achieved, with the support of the Ministry of Defence, their participation in a total of 17 contracts for the development of new European defence systems with a total value of €172.5 million. This now puts Cyprus seriously on the map of the European defence industry.
What are the capabilities of the domestic defence industry and its contribution to the security of the Republic of Cyprus?
The Cyprus defence industry has already developed the necessary logistical infrastructure, know-how and capabilities to participate as a co-producer in the European supply chain of operational defence systems. We are proud that Cypriot companies develop, among others, innovative technologies of intelligent unmanned land, sea and air vehicles, smart radars with the ability to detect targets beyond the horizon, integrated anti-aircraft systems for neutralizing drones, electronic warfare systems, cybersecurity platforms, early target detection systems, communications protection technologies from interference, maritime surveillance systems and advanced military communications systems.
We currently have the capabilities and infrastructure to support the National Guard both in designing and developing solutions for operational needs, as well as in maintaining and upgrading systems. And all this with significant economic and technological benefit, while ensuring the confidentiality of technologies, self-sufficiency and long-term domestic support. Unfortunately, these capabilities are not exploited by the National Guard since the domestic defence industry is currently not within the armament plans of the Ministry of Defence. With the further development of our industry, I hope that we will soon have the first successes within our borders as well.
As a relatively new industry for Cyprus, what are the challenges you face?
In the defence industry the potential customers are limited and it is mainly the ministries of defence of each country. So the main challenge we face today is the lack of trust from our own state. We can credit this to the fact that we are a relatively young industry, but the capabilities are there and armaments planning now has to be done in a way that exploits the domestic potential of the defence industry with all the benefits that I have mentioned above. How is it possible that the technologies and capabilities of Cypriot companies are fully exploited by the European defence industry, penetrate foreign markets and do not have access to domestic ones?
The objectives of the Cyprus defence industry
What are your goals for 2023 and what is the future for the Cyprus defence industry?
Over the last 35 years, Cypriot taxpayers have contributed more than EUR 8 billion. Every year the extraordinary contributions for defence exceed EUR 300 million. euro. And yet, despite the huge investment, we have not managed to build a single Cypriot component domestically, we have not created a single industrial cooperation program for the transfer of know-how, we have not developed a single national defence system. Our self-sufficiency is at zero and our dependence on foreign suppliers is complete. This definitely needs to change and is our main goal for 2023.
In cooperation with the CCCI and OEB, we have already submitted a detailed proposal to the Ministry of Defence in order to finally institutionalize industrial cooperation in armaments, which will have multiple benefits for the Republic of Cyprus. The Cypriot defence industry for the first time today has proven that it has capabilities comparable to advanced countries and its integration into armaments planning is essential.
Collaborations with associations from other countries
What other initiatives is your association involved in and what is the benefit to national security, local industry and the economy?
Our association promotes the strengthening of the national defence industry through international partnerships. On January 23, at the first Defence and Security Conference that we are co-organizing in Cyprus under the auspices of the Ministry of Defence and the CCCI, we will sign a protocol of cooperation with the Hellenic Association of Aerospace Security and Defence Companies, while we will soon sign a cooperation protocol with the corresponding association of France, the Czech Republic and other countries. We also promote the participation of Cypriot companies in defence fairs with Cypriot pavilions.
