The European Union is entering a new era of strategic defense investment with the launch of the Strategic Arms Fund for Europe (SAFE) – a €150 billion initiative aimed at strengthening the continent’s defense capabilities and industrial base.
What is SAFE?
SAFE is a large-scale EU loan-based fund designed to:
- Support the procurement of weapons, ammunition, drones, and advanced defense technologies.
- Stimulate collaboration between EU member states and trusted partners.
- Strengthen the European defense industrial base.
Unlike previous EU programs, SAFE is exclusively focused on defense and offers repayable financial support to participating countries.
Current Status (July 2025)
- France, Belgium, and Romania have already joined the initiative.
- Ukraine, Norway, Switzerland, and the UK are eligible to participate as partners.
- Discussions are ongoing about the inclusion of non-EU defense manufacturers.
- The fund is expected to expand rapidly as more countries and companies engage.
What This Means for the Industry
The SAFE fund is a game-changer for the European defense ecosystem, setting off a wave of investment and procurement across the continent. Here’s how it will impact the industry:
Increased Demand For:
- Vehicle assemblies and sub-components
- Electrical systems and wire harnessing
- Powerpack and engine service parts
- Kitting and inventory solutions
- Specialty coatings and compliance-controlled materials
Who Will Benefit:
- Large defense manufacturers
Companies producing weapons systems, ammunition, drones, artillery, naval and underwater systems. - SMEs in the defense supply chain
Electronics, software, and precision engineering firms delivering components, sensors, and communication systems. - Innovation-driven tech companies
Especially those working in drone technology, artificial intelligence, cybersecurity, and robotics.
As the defense industry enters a period of accelerated growth, companies that are prepared to scale and adapt will lead the transformation — supported by strong, future-ready supply chains.
How Gexpro Services Europe Supports the Defense Sector
At Gexpro Services Europe, we specialize in supporting the production and aftermarket service of:
- Land system vehicles
- Radar and communication systems
- Marine subsystems
- Aircraft and engine platforms
Our services include:
- Customized kitting solutions for transfer cases, differentials, brake systems, and more
- Vendor Managed Inventory (VMI) and replenishment technology
- Compliance expertise with ITAR, DFARS, CDI, and CUI requirements
- Broad product offering from fasteners and filters to sensors, electronics, custom-made fabrications and mechanical components
- Total cost ownership (TCO) management – warehousing, inventory and cash-flow management, logistics and procurement cost control
- Value engineering, obsolescence management
We are committed to being your most trusted and responsive supply chain partner in the defense industry.
Contact us today to explore how we can help your organization scale and succeed in this new era of European defense investment.
