US arms firm Anduril could make interceptors in Europe, executive says

WARSAW, Oct 16 (Reuters) - US defence firm Anduril could eventually manufacture its newly unveiled Steelfin interceptor missiles in Europe, a company executive said this week, as governments aim to expand air-defence production after global conflicts highlighted shortages of interceptor missiles.

"I certainly hope that something like Steelfin could become a capability that we engage with both the Polish customer and industry," Brian Moran, Anduril's vice president for Europe, told Reuters on Monday.

"We would definitely consider engaging European partners and customers on this capability." Steelfin is due to undergo flight testing in 2027, according to Anduril.

Wars in Ukraine and the Gulf have strained stocks of air-defence interceptor missiles and caused delivery delays.

Moran said Anduril saw Steelfin as a complementary system that could provide a more affordable interceptor alongside existing missile-defence systems like the Patriot and others.

The company is already in talks to establish production in Poland of its Barracuda-500 cruise missile, and Moran said that experience could open the door to additional manufacturing projects.

"We're having a very good experience with our industry partner here, PGZ," he said, adding that discussions were also under way with the defence ministry and other government agencies. PGZ is Poland's state-owned arms group.

Poland, one of NATO's top defence spenders relative to the size of its economy, is seeking to expand domestic arms production and reduce reliance on foreign suppliers.

Moran said talks with PGZ, its WZL-2 unit and the government were focused on balancing local production with delivery speed and Poland's specific military requirements.

Asked about growing calls in Europe for defence-industrial sovereignty, Moran said the term could mean different things, from security of supply and maintenance capabilities to control over software upgrades and future modifications.

"Sovereignty has a cost. There's a cost to localisation. There's cost in terms of timing and just schedule. And those need to be considered in light of the threats that Europe collectively is facing."

While governments also want economic benefits from defence spending, the military outcome is most important, he said, adding that greater localisation can come with additional costs and longer timelines.

(Reporting by Karol Badohal; Editing by Cynthia Osterman)