Metlen Energy Metals (LSE:MTLN), through its defence unit M Technologies, has signed an Exclusive Partnership Agreement with Cyprus-based industrial group Houtris to establish a joint company producing defence land systems in the Republic of Cyprus.
The new entity will begin by manufacturing military vehicles under the European Union's SAFE programme, a financing initiative designed to strengthen the bloc's defence industrial base.
M Technologies brings international experience and industrial capability to the venture, while Houtris contributes more than 45 years of manufacturing and integration work for Cyprus' Ministry of Defence, National Guard, Fire Service and Police.
The two companies plan to explore further production, integration and maintenance work across Cyprus and the wider region, aiming for a lasting industrial presence and economic contribution in the country.
M Technologies already supports advanced defence programmes including Patriot systems, Leopard tanks and sections of the FDI HN (Belharra) frigates, positioning it as an established contractor rather than a new entrant to the sector.
"This agreement is an important step in that direction and creates a new model of industrial cooperation between Greece and Cyprus," said Vassilis Tsiamis, chief executive director of M Technologies, adding that the deal centres on transferring know-how and developing local skills.
Houtris chief executive Yiannis Houtris said the initiative would help establish "Cyprus as a reliable industrial partner in the European defence industry."
The partnership is framed as aligning with EU efforts to boost strategic autonomy and resilience in defence manufacturing, with the joint venture's first output tied to SAFE programme vehicle production.
News Intelligence what this means for the company
Metlen Energy Metals' defence unit M Technologies has partnered with Cyprus industrial group Houtris to form a joint venture manufacturing military vehicles under the EU's SAFE programme in Cyprus. The deal leverages M Technologies' existing track record supporting Patriot systems, Leopard tanks, and Belharra frigate sections, paired with Houtris' 45 years of local defence ministry work, positioning the venture as an established contractor entry into Cyprus-based production rather than a greenfield startup.
The partnership expands M Technologies' footprint into EU-backed defence manufacturing and establishes a regional production hub, but the announcement contains no financial terms, timeline, or revenue guidance, leaving the venture's material impact on Metlen's earnings or cash position unclear.
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