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Murtra calls for a consolidation to create defense ‘national champions’

Date: February 28, 2024 Time: 19:54:15

Indra’s president, Marc Murtra, calls for further consolidation of the defense industrial sector to create ‘national champions’ with greater investment capacity and greater economic scale. “There have to be more big and relevant operators,” he argues. The executive makes this appeal a few days after the Escribano family business, a state contractor and Indra’s own partner in various programs, has acquired 3% of the shares of the semi-public company with the aspiration of having a presence on the board .

Murtra has once again defended during his speech at the International Defense Fair, which is taking place these days in Madrid, that today the defense industry is “more fragmented” than that of other European countries. “It has deficiencies in scale, investment capacity and technological capabilities,” the executive has argued. In this context, he believes that they must adapt to the “new scenario” by deepening the need to gain size. The large European programs are carried out through cooperation with companies in the sector, which is why collaboration between companies has become the “European dynamic”. For him, it is necessary to “weave alliances” between companies to also have more space in the large decision-making centers.

To try to reinforce the message, the executive points to the Ministry of Defense and its intention precisely to support this consolidation of the sector “strengthening its position in the European arena”. The Prime Minister himself, Pedro Sánchez, made an appeal in this regard. The still CEO, Ignacio Mataix, internally defended more than a year ago the possibility that Indra would go on the market to take positions in smaller companies.

From the Army they also demand that there be greater collaboration between companies. The Chief of the Defense Staff, Teodoro López Calderón, has insisted on the need to “grow and consolidate” in the face of this new cycle of growth and increased military spending. He points to a pact between the main companies to avoid “fratricidal competition”. For him, this is the biggest short-term challenge in the sector.

These statements by the president himself and Jemad occur in a few days in which the pieces of the sector continue to move. Escribano has acquired 3% of the company with an investment of 65 million euros. Faced with a time like the present, in which public defense budgets are going to increase considerably in the coming years, small companies are concentrated around Indra.

In the chapter on using the Ministry of Defense, Murtra has defended the need for greater “financial planning” on the side of public spending so that there is “greater predictability” on the side of the companies. “We will need a stable financial framework”, she has defended. Despite the fact that the moment is “enormously demanding”, he understands that the future of the sector emerged from the way in which public and private collaboration was established.

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Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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