A Ukrainian drone manufacturer is teaming up with an American company to build drones on American soil.
If it stays in Ukraine, it fears it will be “wiped out” by Russian aggression or competition.
Firms from Ukraine are increasingly expanding abroad.
A Ukrainian drone maker is teaming up with a US manufacturer to build the weapon on US soil amid fears it will be “eradicated” at home.
“Living in Ukraine actually means staying local and removing in a few years or months,” General Cherry co-founder Stanislav Hershin told Business Insider.
Growing Ukrainian defense companies like his are seeing opportunities beyond their own conflict. They believe that staying in Ukraine – where they are in the crosshairs and fighting to survive in a heavily saturated market with limited growth potential – could eventually kill them physically and professionally.
Staying at home is a risk of outcome or destruction.
First, he said, “we are a target for the enemy.” Russia regularly targets Ukrainian defense products with missile and drone strikes.
But beyond that, the Ukrainian market is “not the biggest, and it’s very local,” limited by what Ukraine’s limited defense budget can afford. And at General Cherry, “We don’t want to be local players.”
Ukrainian products, such as interceptor drones, are in growing demand.AP Photo/Efrem Lukatsky
Another concern is that without an international market presence, foreign companies may copy Ukrainian innovations and scale production, taking market share that could otherwise go to Ukrainian firms.
The company is now partnering with American manufacturer Wilcox Industries to make first-person-view (FPV) and interceptor drones in the United States, with development led by General Cherry and production based at Wilcox’s facility in New Hampshire.
The project is still awaiting formal approval, but the firm said it supported the move, explaining that Ukraine would “scale what works” and “bring Ukrainian technology to a global level.”
Hryshyn said that for security reasons, he could not comment on where the drones produced through the partnership would go, Ukraine or the US.
“There is no doubt in my mind that by combining our Wilcox manufacturing infrastructure and engineering resources with General Cherry’s technology, we will bring tremendous value to the U.S. government,” Wilcox Industries Corp. founder and CEO James Tietzel said in a statement about the partnership. Titzel’s company makes defense equipment, including fire control systems and laser aiming devices.
General Cherry wants to “integrate into the global defense system, become a global player, play internationally,” Harisin said. And also for the company’s growth, “We think it would actually be a crime if we stayed in Ukraine. We’re already big in Ukraine.” But it is more than that.
Hryshyn says “The fact is that for American companies, they also have a lot to learn from us. And we hope that this will be a fruitful partnership for both of us.” NATO alliance officials and industry leaders say Ukraine has significant value in battlefield-driven innovation and rapid production cycles.
Ukraine’s defense industry is booming, making up a growing portion of the equipment used by its military and attracting increasing interest from allies seeking battle-proven technology.
Foreign countries are interested in Ukraine’s battlefield technology and production technologies.AP Photo/Evgeny Maloletka
But staying in Ukraine comes with obstacles. Companies are prioritizing supplying the war effort, but operating only domestically limits how much they can produce, hampering not only the companies but also the war production capacity.
Industry leaders say manufacturers have the capacity to make more than they currently do, but they can’t because Ukraine’s defense budget can’t afford more gear. They argue that exports will generate revenue to scale production, including Ukraine’s own military.
Staying in Ukraine means spreading production and slowing production efforts for a Russian invasion. Companies sometimes split their production across as many as a dozen sites, which makes operations safer but also much less efficient.
Ukraine’s leaders have taken steps to expand what gear manufacturers can ship abroad and what partnerships the industry can establish with other countries, including deals that allow allies to receive Ukrainian weapons.
Hryshyn said his company chose Wilcox Industries because it is an established manufacturer with proven products. He said that while some of the startups were very interesting, they did not yield tangible results.
Additionally, he said, “We think the American market is actually the biggest in the world.”
General Cherry is one of a growing number of Ukrainian companies partnering with NATO companies to produce weapons abroad – giving Western partners access to Ukrainian technology and experience, reducing the risk of attacks. Denmark, a leader in the “Build with Ukraine” initiative, says NATO companies have a lot to learn from Ukrainian firms and are seeking access to their technology.
Hryshyn said he saw that demand. In discussions with Western partners, “our experience and expertise is very valuable to them.” He added that the U.S. is “learning a few things from Ukraine,” including how to work with startups and how to work toward a more open, flexible defense ecosystem.
