Romania has signed two major defence procurement contracts worth approximately €1 billion, securing not only new military equipment but also technology transfers and the establishment of local production capacity.
The agreements cover the acquisition of 12 Airbus H225M Caracal multirole helicopters and 12 Thales Ground Master 200 MM/A air-surveillance radars. Both projects will be financed under the European Union’s Security Action for Europe programme, known as SAFE.
The contracts were concluded between Romania’s General Directorate for Armaments and the relevant French procurement authority. Industrial cooperation agreements accompanying the purchases require Airbus and Thales to transfer technology and carry out part of the manufacturing and integration work in Romania.
Airbus to establish helicopter assembly line in Brașov
The order for 12 H225M Caracal helicopters is worth approximately €757 million, while the total value of the related SAFE project has been estimated at €852 million.
The aircraft will be configured for a wide range of military operations, including ground attack, reconnaissance, surveillance, tactical protection and airborne assault. Deliveries to the Romanian Armed Forces are expected to continue through 2030.
A central element of the agreement is the creation of a final assembly line at the IAR Brașov facility in Ghimbav. The plant will be modernised to manufacture the H225M, while Romanian engineers and technicians will receive specialist training in France over the next five years.
Beginning in 2030, helicopters assembled in Brașov are expected to be supplied both to the Romanian military and to international customers. This would integrate the Romanian aerospace industry more closely into Airbus’ global supply and production network.
For decades, IAR Brașov has focused mainly on manufacturing and maintaining PUMA helicopters. The new agreement is intended to help the company transition to a new generation of medium-heavy military aircraft.
Radar components to be manufactured locally
The second contract, worth around €247 million, covers the delivery of 12 Ground Master 200 MM/A radars manufactured by Thales. The entire SAFE project associated with this procurement is valued at approximately €258 million.
The mobile radar systems are designed to detect aircraft, drones and missiles at short and medium ranges. They can also identify low-flying targets and operate in difficult weather conditions and contested electromagnetic environments.
Under the industrial cooperation agreement, radar antennas will be manufactured in Romania, while their integration with vehicle platforms will also take place in the country.
Thales plans to expand its Romanian operations to approximately 1,000 highly qualified employees. The local workforce will participate in the development and production of advanced radar hardware and software.
Investment in Romania’s defence industry
The agreements represent an important step in Romania’s efforts to modernise its armed forces while strengthening its domestic defence industry. Rather than limiting the projects to the import of finished equipment, Bucharest has made industrial cooperation and local production key conditions of the contracts.
Airbus and Thales have also committed to investing in the development of Romania’s technical workforce. Planned initiatives include scholarships, internships and training programmes for students and young engineers specialising in aeronautics, electronics and information technology.
The projects could give Romania a more significant role in European defence production at a time when EU countries are seeking to expand their military capabilities and reduce dependence on supply chains outside Europe. They could also create long-term export opportunities for the country’s aerospace and electronics sectors.
