Thales and Dutch Defence Ministry expand radar production partnership in Hengelo

The agreement, announced on 22 June, focuses on the company’s site in Hengelo, where Thales has been present for decades following its acquisition of Hollandse Signaalapparaten in the 1990s. The Dutch unit has since become a key industrial hub for radar and combat management systems, including TACTICOS and radar families such as GM200 MM/C and SMART-L.

Under the deal, the partners plan to build a new state-of-the-art near-field test facility featuring an anechoic chamber, expand production capacity for complex printed circuit boards, add training facilities and construct a new radar test tower. The investment is intended to support both development and industrial scaling of radar systems at a time when demand is increasing across European and export markets.

Thales says the expansion will allow it to increase production of radar antennas by around 60% between 2025 and 2028. The group has pointed to sustained demand growth for its sensor systems, driven by ongoing modernisation programmes across NATO countries and wider security pressures in Europe.

For the Dutch side, the partnership is framed as a way to secure long-term access to radar systems and ensure operational availability of equipment already in service with its armed forces. The deal also reflects a broader ambition to maintain technological edge in defence systems and to strengthen Europe’s industrial base in critical military technologies.

The Dutch Defence Ministry, which also holds a small shareholding in Thales Nederland of around 1%, described its role as both customer and stakeholder. While the equity stake is limited, it is seen within the company as reinforcing close institutional ties and ensuring priority access to advanced radar solutions developed in the country.

“To strengthen our defence we choose the best equipment, but to remain competitive we also rely on partnerships where continuous innovation is essential,” Dutch State Secretary for Defence Derk Boswijk said, according to the announcement, calling the cooperation a reflection of both priorities.

Thales Nederland chief executive Otto de Bont said the partnership builds on a long-standing relationship with the Dutch armed forces, describing it as “exceptionally strong and transparent” and adding that further investment in facilities would support autonomy and resilience for European defence customers.

The French defence and electronics group, part of Thales, has significantly expanded its footprint in the Netherlands in recent years as European governments accelerate procurement of radar and air defence systems. The country has become one of the company’s key industrial bases for sensor production.

The cooperation also reflects wider NATO and EU trends toward strengthening supply chains for critical defence technologies following Russia’s full-scale invasion of Ukraine, which has driven up demand for air surveillance and missile detection systems. Several European states have increased procurement of ground-based radar systems, putting pressure on manufacturers to scale up production capacity.

Analysts and defence publications in Europe have described the Netherlands as an emerging hub for radar development, supported by repeated acquisitions and long-term procurement programmes. The Dutch military has previously acquired multiple Thales radar systems, positioning the country as both a user and exporter within government-to-government deals.

Shares in Thales slipped around 1.9% in Paris trading shortly after the announcement, reflecting broader market volatility rather than a direct reaction to the contract, according to traders.

The Dutch Ministry of Defence, formally Ministry of Defence of the Netherlands, said the partnership will also support international availability of radar systems, including under intergovernmental contracts, and help maintain what it described as a “decisive advantage” for armed forces in Europe in the coming years.