Metlen and Houtris to form Cyprus venture for military vehicle production
Metlen’s M Technologies and Cyprus-based Houtris have signed an exclusive agreement to establish a joint company producing military vehicles in Cyprus. The project is linked to the EU’s SAFE program, through which Cyprus expects access to €1.18 billion in financing.
Joint company to add production capacity in Cyprus
Greek industrial group Metlen, through its defense arm M Technologies, and Cypriot manufacturer Houtris have signed an exclusive cooperation agreement to create a joint company in Cyprus. The venture will develop new capacity for the production, integration and support of defense systems, with military vehicles identified as its initial manufacturing focus under the European Union’s SAFE program.
Business Daily reported that the partners intend to combine M Technologies’ international program experience and industrial capabilities with Houtris’ local manufacturing base and knowledge of the Cypriot market. The agreement also covers technology transfer, specialist workforce development and the use of existing Cypriot industrial capacity. Production, maintenance and technical support opportunities may later be pursued elsewhere in the region.
The size of the investment, ownership structure and planned production capacity have not yet been disclosed. According to Mononews, the next steps include preparing the business and investment plans and constructing a new plant in Cyprus. Its output will be aligned with procurement programs announced by the Cypriot government.
SAFE financing supports the industrial plan
The project comes as Cyprus prepares to use low-interest financing available through SAFE, the EU instrument intended to strengthen European defense procurement and manufacturing. Mononews said Cyprus became the sixth EU member state to join the program and expects to obtain €1.18 billion. Part of that financing is expected to support production activities developed by Metlen and Houtris, although no allocation to the venture has been specified.
M Technologies already participates in the production or support of Patriot air-defense systems, Leopard tanks and components for FDI HN, or Belharra, frigates, according to Business Daily. The Cyprus venture gives Metlen a manufacturing position in a new national market while extending its defense activity beyond its existing Greek industrial base.
Local vehicle expertise meets larger defense programs
Houtris, formally Spyros Houtris & Sons Ltd, was founded in 1980 and initially manufactured truck bodies and special vehicles. The family-owned company is led by chief executive Giannis Houtris and has developed military and special vehicles, mobile command centers, support systems and other specialized industrial applications. Its customers have included Cyprus’s Ministry of Defence, National Guard, police and fire service, as well as organizations outside the country.
For Houtris, the partnership provides access to a larger industrial partner with experience in complex international defense programs. For Cyprus, it offers a route to retain more production, integration and maintenance work domestically rather than limiting industrial participation to procurement. For Greece, the venture broadens the role of its defense manufacturers in the Eastern Mediterranean and in supply chains being promoted through EU programs.
The agreement does not yet identify a vehicle model, production timetable, customer order or export target. Execution will therefore depend on the Cypriot government’s procurement decisions, the venture’s final investment plan and its ability to qualify for SAFE-backed projects. The immediate significance lies in establishing a formal Greek-Cypriot production platform capable of bidding for future land-system work.