IMCO Group (TASE: IMCO) announced today that it has begun delivering operational systems through serial production at its Romanian subsidiary, IMROD—marking the transition from facility setup to full-scale manufacturing operations in Europe.
The move enables IMCO to operate as a local manufacturing partner for European customers, shortening delivery times, improving supply chain flexibility, and aligning with regional regulatory requirements. It is also expected to enhance the company’s ability to compete in European defense tenders, where local production capabilities are often a key requirement.
IMROD supplies integrated systems for mission-critical applications across a range of defense platforms, with a focus on armored vehicles and air defense systems. According to the company, operations comply with European Mil-Spec standards and local regulations, while offering engineering, integration, and support services to customers in the region.
The Romanian facility, first announced in September 2025, was designed to support both IMCO’s existing order backlog and growing demand in the European defense market, driven in part by rising defense budgets across the continent. At the time, the company emphasized that a European presence would allow it to qualify as a “local supplier” and deepen collaboration with platform manufacturers and system integrators.
IMCO’s defense activity focuses on electrical, electromechanical, and control systems deployed across a wide range of platforms, including armored fighting vehicles, main battle tanks, and fighter aircraft. The segment has become a key growth driver: in the first half of 2025, the company reported a 24% increase in revenue to approximately NIS 158.5 million, with defense-related sales rising 41% year-over-year.
According to CEO Ariel Kendel, the shift to full-scale operations in Europe allows IMCO to work closer to its customers and support programs in line with European industrial and regulatory frameworks, while also aligning with regional initiatives aimed at strengthening defense manufacturing and ensuring supply continuity.
The company added that the Romanian site has significant expansion potential, including plans to increase its footprint and grow its engineering and technical workforce, as part of IMCO’s broader global growth strategy.