Exclusive-Ukraine missile maker targets ‘game changer’ air defence system by 2027

by Max Hunder and Daniel Flynn

April 6 (Reuters) – Fire Point, the maker of Ukraine’s Flamingo cruise missile, is in talks with European companies to launch a new air defense system by next year, creating a low-cost alternative to the Patriot system that is increasingly difficult to obtain, a senior executive told Reuters.

Fire Point co-founder and lead designer Denys Shtilierman said they aim to reduce the cost of intercepting a ballistic missile to under $1 million, as wars in Ukraine and Iran cause global instability and governments try to defend their own skies.

Shtilierman also said Fire Point is awaiting government approval for an investment by a Middle Eastern conglomerate that values ​​the company at $2.5 billion and would open the door to new business opportunities, including low-orbit satellite launches.

Years of battlefield know-how gained with Russian forces have made Ukraine a leading innovator in low-cost defense technology. With the outbreak of war in the Gulf, Kiev used this expertise to sign security agreements with governments in the region.

Many Ukrainian defense firms are now trying to export their excess capacity and cash in on the global boom in military spending. Although the government recently relaxed wartime export restrictions, any proposed deal is still subject to strict controls and state approval.

DEVELOPING AN ALTERNATIVE TO THE PATIENT SYSTEM

Ukraine and many other Western allied countries rely heavily on the US-made Patriot system to stop ballistic missiles.

However, the supply of Patriot missiles, which are widely deployed in the Gulf against Iranian attacks, is gradually decreasing. The Italian-French SAMP/T, Europe’s only anti-ballistic system, is produced in relatively small numbers.

To shoot down a ballistic projectile, the Patriot system produced by Raytheon and Lockheed Martin typically requires two or three air defense missiles, costing several million dollars each, Shtilierman said.

“If we can get this down to under $1 million, it will be a game changer in air defense solutions,” he said in an interview. “We plan to intercept the first ballistic missile by the end of 2027.”

Shtilierman declined to name the European companies involved in discussions on developing the new system but said he was “deeply interested” in collaborating on radar, missile homing and communications systems, areas in which Fire Point lacks expertise.

⁠Weibel noted that European companies such as Hensoldt, SAAB and Thales have good radar solutions.

Founded after Moscow’s 2022 invasion, Fire Point is Ukraine’s largest manufacturer of long-range drones used in most attacks deep within Russia.

In recent months, the FP5 long-range cruise missile, commonly known as Flamingo, has also been used to hit Russian military facilities and weapons factories, including a ballistic missile facility about 1,400 km (870 miles) inside Russian territory.

Fire Point is currently in the final stages of developing two supersonic ballistic missiles, Shtilierman said.

The smaller FP-7 missile, which has a range of about 300 km, is similar to Lockheed Martin’s ATACMS short-range ballistic system and will have its first military deployment “in the near future,” he said.

He added that the larger FP-9, which can carry an 800kg warhead up to ‌850km, was about to enter testing and would put Moscow within range of Ukraine’s ballistic arsenal.

Shtilierman said attacks on Moscow, which is surrounded by the world’s most powerful air defense systems, would cause “a massive shift in the minds of Russians and high-ranking men in Russia.”

The Russian defense ministry did not respond to a request for comment.

Fabian Hoffmann, a missile expert and senior researcher at the Norwegian Defense University College, said that although Russia has experience in successfully shooting down ATACMS, more widespread use of ballistic missiles could strain Russian air defenses already weakened by Ukrainian attacks.

While Fire Point’s goal of installing a low-cost air defense system by 2027 is “ambitious,” he said there would be strong demand from governments beyond Ukraine’s own military needs, even if its kill rates per missile were less effective than Patriot’s.

UAE INVESTMENT MAY START SATELLITE INITIATIVE

Shtilierman said Ukraine’s anti-monopoly authority should make a decision by October on the proposed $760 million purchase of a 30% stake in Fire Point by the Middle Eastern investor.

Ukrainian media reported that the bidder was Emirati defense firm Edge Group. Edge Group and Ukraine’s anti-monopoly authorities did not respond to a request for comment.

The investment will be the first step in a project to build a space launch terminal in the UAE, eventually creating a constellation of low-orbit European satellites. Shtilierman said that the country’s location close to the Indian Ocean and geographical conditions are suitable for space launches.

“We’ve built a carbon wrapping machine that allows us to wrap a large, robust rocket booster for satellite delivery,” he said, noting that the project remains in the conceptual stage although there are already agreements with “several Western companies.”

Regardless of whether the BAE deal goes ahead, Shtilierman said Fire Point won’t take on more investors until it shows success with its missile defense system that will use the company’s FP7 missile. .

Meanwhile, Fire Point has received interest from Gulf countries 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 monthly.

But he said exporting the Flamingo missile was much more difficult due to regulatory hurdles.

Fire Point says it produces hundreds of long-range attack aircraft a day, each costing about 50,000 euros ($57,775) to produce, and three Flamingo missiles costing about 600,000 euros each. He acknowledged some “bottleneck” issues with the Flamingo, including engine production.

Fire Point said it would increase production of the Flamingo in October, with a new in-house engine entering series production and a rocket fuel facility in Denmark coming online later this year. The facility is awaiting two final approvals from Danish authorities.

($1 = 0.8654 euros)

(Editing by Joe Bavier)