Nikos Kostopoulos: Discussions with the Armed Forces for new equipment

Interview with Stefanos Nikolaidis

For the total restoration of the historical industry “Greek Defense Systems”, the coveted goal of operating profitability by 2025, his meeting with the Ukrainian president Volodymyr Zelensky in October, but also the new future equipment projects that are in the works, he spoke to skai.gr the Managing Director of EAS, Nikos Kostopoulos.

In detail, the interview of Mr. Nikos Kostopoulos:

– Looking back at historical data for Greek Defense Systems, which this year turns 150 years old, we understand that you are the longest-serving head of the Company. If you had to take stock of the five years you were at the helm of EAS, what would you say? How much has the Company grown during this period? Let’s not forget that in 2019 EAS was one of the perennially most problematic public enterprises.

The rescue and development of a historical industry, intertwined with the defense of the country, was a great challenge. For decades, the necessary attention had not been given to its consolidation by previous governments and administrations, resulting in basic deficiencies in procedures, planning and organization. Fortunately we quickly found our stride. Accumulated backlogs of the past were dealt with with a lot of quality work by our people, with the help of the two co-competent ministries, the Ministry of Finance and the Ministry of Finance, key to the total restoration of the historical industry. The first as the main shareholder and body of the resolution process, and the second as the supervising body and natural recipient of our work.

– To what extent is the target for operational profitability achievable within the next year?

Considering that the production investment in the Lavrio unit under the upcoming joint venture must first be implemented, we will have to move at extremely high speeds to see results from it within 2025, when it is most likely that the new company will start giving earnings after next year.

However, apart from the joint venture with the CSG group we are running many other projects, such as the maintenance of the Patriot missiles, the participation in the IRIS-T missile program which will be extended to new orders of 50 million additional euros, the cooperation in the co-production of the munitions 155 and many more. We expect EAS to return to viability even before the joint venture starts paying dividends.

At the same time, we are already in discussions with the Hellenic Armed Forces for new programs, such as the total production of 155 mm ammunition and the upgrading of 122 mm rockets and RM 70 launchers. Greece.

– In October you met with Ukrainian President Volodymyr Zelensky. How productive was this for the Greek Defense Systems, not only in terms of upgrading their production capacity, given the European ASAP program, but also of geostrategic importance?

I had the honor to meet with the President of Ukraine Mr. Zelensky in a discussion on strengthening defense cooperation and security at the European level. Within a framework of international cooperation and solidarity, the discussion focused on defense cooperation and the possibilities of strengthening security at the European level. Another proof of Greece’s role in maintaining peace and stability. It was the result of our concerted effort, always with the support of the relevant ministries, to put EAS back on the European defense map as a reliable supplier and partner.

– What are the benefits of the cooperation with the Czech CSG group, for the production of short, medium and long range ammunition and by what criteria did the Greek government choose this company?

Two key successes have resulted from the approval of the proposals we jointly submitted with the CSG Group to the European Commission under the ASAP programme, and are funded by it. The first concerns the creation of a state-of-the-art, world-class TNT production line, an explosive necessary for the production of ammunition. The new EAS TNT plant will be the second TNT production plant in Europe.

The second concerns the creation of a production line for base bleed pellets, a propellant that increases the range and effectiveness of artillery ammunition. With the participation of the private partner, the total amount that will be invested for the two programs reaches €83 million. It is the first time that the Greek Defense Systems are financed by European funds and also the first time that they manage to agree on the cooperation with an internationally prestigious house that will contribute not only financially, through total investments that will approach 150 million euros in our facilities, but – most importantly – transferring new product technologies that will make our country’s Defense Industry much more competitive, creating hundreds of new and quality jobs, while ensuring the defense self-sufficiency of our country.

– In the long term, at what levels can the turnover that will be produced through the Joint Venture with the Czechs fluctuate?

It is expected that with the activation of the new production activity, the turnovers will be able to reach up to 200 million on a five-year basis from the consortium, in which EAS will hold the majority of 51%, plus any other programs that have already been launched, or are in progress today at the planning stage of the EAS.

– What are the challenges in planning for the reconstruction of the EAS? Did having the state as a major shareholder facilitate or hinder?

A state-owned company has the obligation to comply with the requirements of the relevant law for the way it operates, since the main shareholder is the tax-paying citizens. This adds a significant bureaucratic burden, but is also necessary for legality and transparency. When I took over the Greek Defense Systems five years ago, there was a clear directive from Mr. Prime Minister for housing, extroversion and seeking allies. To achieve this, the vision for the next day had to be created in the Company’s human resources, which are its main asset. With a lot of perseverance and patience, with the support of the Company’s staff, today we can look forward to a productive and profitable future. For the people of the EAS and above all for the taxpayer and of course for the Defense Industry which as you understand is extremely important for our country.