Cypriot companies operating in the defence industry record rapid growth the House Committee on Energy, Commerce, and Industry heard by both the Cyprus Chamber of Commerce and Industry and the Cyprus Association of Research and Innovation Enterprises. According to CCCI, the number of such companies has increased tenfold in recent years, while according to CARIE, their activities generate revenues of around €40 million.
Speaking before the Committee, Defence Minister Vasilis Palmas said that the Cypriot defence industry is ready to produce final products, noting that companies operating in the defence industry are able to supply products to the wider public sector as well as the private sector, thus serving other sectors of the economy.
Palmas also said that the Defence Ministry subsidizes companies to promote their products and their participation in international defence equipment exhibitions.
Responding to a question by the Committee Chairman and DISY MP, Kyriakos Hadjiyianni regarding the allocation of the EU SAFE program budget for equipment, Palmas explained that up to 60% will be allocated to large member states and that a smaller share remains to be determined for the rest.
He stressed that Greece and Cyprus are raising issues relating to their special situation due to the situation with Turkey and that, in the context of the ongoing assessment, they ask not to be treated in the same way as Luxembourg and Belgium, countries located in the EU’s interior. He explained that the EU is being asked to show the same sensitivity it shows towards the Baltic countries, “which, according to Europeans, are threatened by Russia,” as he said.
Furthermore, the Ministry’s Acting Permanent Secretary, Anna Aristotelous, told the Committee that under the contracts concluded by the Ministry with foreign contractors, they are encouraged to develop cooperation with Cypriot companies. She also said that 13 Cypriot companies participated in the defence equipment exhibition held recently in Greece.
On his part, the Director of General Procurement and Defence Capabilities Development, Panayiotis Hadjipavlis, expressed his satisfaction that Cyprus is among the countries securing funds from the European Defence Fund. He also noted that a defence industry strategy is being prepared with a European grant of €500,000, which is expected to be completed in about 1.5 years.
The Chief of the National Guard General Staff, Lieutenant General Georgios Tsitsikostas, stressed the need for the National Guard to be provided with the appropriate equipment when necessary. He explained that in the current situation, everyone is looking for defence equipment because there are long delays in the market. He added that this is precisely why many countries are resorting to producing copies to meet their needs.
Lieutenant General Tsitsikostas said that the National Guard has not yet received any final products from Cypriot companies, but has conducted tests. He noted that the tests revealed products that are competitive, while highlighting the testing and evaluation of this equipment as an important parameter of the production process.
The Cyprus Association of Research and Innovation Enterprises told the Committee that the revenue generated by the activities of Cypriot defence industry companies amounts to €40 million, while the Deputy Secretary General of the Cyprus Chamber of Commerce and Industry, Andreas Andreou, said that the number of Cypriot companies active in the defence industry has increased to around 30, from just 2-3 initially.
Public universities and the Deputy Ministry of Research and Innovation also expressed their intention to contribute in the effort to develop research and innovation, which will also boost Cyprus’ defence industry.
Also read: Defence Min: The Turkish occupation is becoming dangerous
Source: CNA
