Orqa and General Cherry build underground in Ukraine

Croatian drone technology manufacturer ORQA and Ukrainian drone maker General Cherry are jointly developing and manufacturing interceptor drones, components, and counter-drone systems across both countries, Business Insider reported. As part of the partnership, the companies are constructing an underground factory in Ukraine to produce components.

Building Underground In Ukraine

ORQA CEO Srđan Kovačević told Business Insider that operating inside Ukraine teaches manufacturers vital lessons in wartime resilience while under constant threat. Ukrainian defense firms frequently split their manufacturing across multiple sites, relocate operations, and move some work underground to avoid Russian attacks. Kovačević noted that distributed systems create multiple nodes rather than a single point of failure.

They were also compelled to go underground, to go wide, to de-risk their assets in distribution. So I think that’s the way forward for any critical capabilities.

Srđan Kovačević

Building components locally in Ukraine also proves more efficient and cost-effective than manufacturing them within NATO territory and shipping them into the war zone. General Cherry operates at a scale and under conditions that Western counterparts typically do not experience.

Shifting Western Production Views

Western defense companies have traditionally concentrated production in centralized facilities, a practice that several regional defense figures argue leaves them vulnerable. Raivis Melnis, the defense minister of Latvia, told Business Insider that NATO companies operate in a far more concentrated way than Ukrainian ones, raising questions about whether European industry is ready to disperse production locations.

Krattworks head of sales Karmo Saar warned Business Insider that European companies risk severe disruption in a conflict with Russia if they fail to spread out manufacturing. Davyd Aloian, the deputy secretary of Ukraine’s National Security and Defense Council, similarly stated earlier in the year that NATO defense firms should break up production.

Ark Robotics CEO Achi told Business Insider that such defensive measures are necessary but not ideal because centralized operations remain easier to run.

Co-Producing For NATO And Ukraine

ORQA supplies 24 NATO allies with drone technology, including controllers, receivers, goggles, video equipment, and flight simulators. The joint project with General Cherry splits work between Croatia and Ukraine rather than concentrating all manufacturing in Croatia.

In Croatia, the partners are setting up a serial-production facility for interceptor drones and counter-drone systems destined for NATO allies. In Ukraine, the underground facility will manufacture electronics and communications systems that General Cherry will supply to partners across Ukraine.

The collaboration also aims to help Ukrainian industry reduce its reliance on Chinese products by aligning supply chains. Kovačević stated that the partnership combines Western technological expertise with Ukraine’s operational reality of 21st-century warfare.

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Now, it’s time to merge the two and emerge better off on both sides of this partnership.

Srđan Kovačević