Terra Defense Europe will be responsible for sales, maintenance, logistics management and local partner coordination for defence applications. Terra Drone said it will use the company to advance business development, supply, maintenance and operational support capabilities within Europe.
The new company will support defence unmanned assets including the Terra A1, Terra A2 and Terra C1 interceptor drones. These systems are being developed in collaboration with Ukrainian companies.
Terra Drone announced its entry into the defence equipment market in March 2026. Since then, it has been expanding its product portfolio and building its business foundation in the counter-drone defence domain, centred on Terra A1 and the fixed-wing Terra A2.
The company said Europe is strengthening defence capabilities and expanding its regional defence industrial base in response to changes in the security environment. It cited the European Union’s SAFE initiative, which has established a lending facility of up to EUR 150 billion to support joint procurement and defence industrial production capacity.
Terra Drone also referred to the EDIP initiative, which is being advanced to expand production capacity and ensure stable supply in the defence sector. The company said collaboration with Europe’s industrial base and local partners is becoming increasingly important under these frameworks.
Terra Drone said international expansion of defence unmanned aircraft and related systems requires an operational structure that reflects regulatory frameworks and security requirements in each country and region. It added that the transfer of advanced defence equipment is subject to review and coordination under export control regimes, which can sometimes delay actual operation.
Against this background, Terra Drone said it determined that a European business base was needed in addition to direct supply from Japan. The company said such a base would be closer to areas of demand and able to handle business development, supply, maintenance, operational support and logistics management.
Terra Drone described Estonia as geographically and strategically well positioned for defence and technology collaboration in Europe. The company said it views Estonia as a key base for its European defence business and will develop its defence operations across Europe and in other countries and regions.
Terra Defense Europe is intended to provide a platform for participation in European defence programmes and joint procurement. Terra Drone said a locally rooted business structure and close collaboration with regional companies and relevant institutions are becoming increasingly important for future business opportunities.
The company said Terra Defense Europe will support business development, local partner engagement and customer support in the European defence market. Terra Drone said this will strengthen its ability to take part in defence-related programmes and joint procurement opportunities in Europe.
The new entity is also intended to strengthen Terra Drone’s revenue base through after-sales maintenance and operational support. The company said continued customer support capabilities are critical in defence unmanned aircraft systems, including post-deployment maintenance, operational support and logistics management.
Terra Drone is also building its defence unmanned aircraft systems business through collaboration with Ukrainian defence technology companies. Terra Defense Europe will serve as a base to expand those partnerships across Europe by combining Ukrainian development capabilities and local business foundations with Terra Drone’s global network.
The company said the establishment of Terra Defense Europe is part of its wider plan to grow its defence business from Europe. It presents Estonia as a strategic starting point for expanding support, supply and partnership activities in the European defence unmanned systems market.
