Anduril considers building weapons factory outside US

Investing.com -- Anduril Industries Inc. is open to building its next weapons manufacturing facility outside the United States, Chief Executive Officer Brian Schimpf said Thursday at Founders Forum in the UK.

The California-based defense-tech startup has begun construction on its first facility in Ohio but would consider operating another in an allied nation, including in Europe, Schimpf said. He noted that Europe has substantial manufacturing talent and stressed that both the US and Europe need to expand weapons production capabilities to source arms in a predictable manner. He warned that both regions undervalue production compared to China.

Schimpf said Anduril can access supply chains not traditionally focused on aerospace and defense, which will enable the company to rapidly build manufacturing capacity in different regions worldwide.

The company has not finished its Ohio facility or announced specific plans for a second factory. Anduril began producing weapons at scale at its Arsenal-1 facility, starting with its Fury combat aircraft, co-founder and Executive Chairman Trae Stephens told Bloomberg News in April.

Schimpf described moving into production as challenging, comparing it to "getting punched in the face." He attributed the difficulties to a lack of domestic manufacturing talent, calling the process of rebuilding manufacturing competence in the US a generational problem.

Anduril produces drones, drone control software, surveillance tools, and augmented reality helmets for military use. The company's valuation doubled to $61 billion in a May funding round as governments increase military spending.

The US Department of Defense is Anduril's largest customer. The company is working to expand in Europe, where nations are rearming in response to threats from Russia. Anduril has signed partnerships with defense contractors in the UK, Germany, and Poland.

Schimpf said the company has little motivation to go public because it is a capital-light business. He estimated Anduril would be valued two to three times higher if it were public, but said an IPO would distract employees and create price volatility for investors.

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