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A Malaysian Drone Maker Signs Up for Portalegre, the First Contract in a New Defence Cluster on the Spanish Border

The Industrial Portugal Gateway cluster, promoted by the Luso Defense Group with NERPOR, puts the investment at 10 to 20 million euros and allows two years to first production. An Iberian defence fair follows in September 2027.

A Malaysian Drone Maker Signs Up for Portalegre, the First Contract in a New Defence Cluster on the Spanish Border

A Malaysian company that builds drones and works in aviation has signed a contract to set up in the Portalegre region, business leaders there said on Friday, in an investment put at between 10 and 20 million euros. It is the first signed deal for a new cluster that wants to bring defence and dual-use industry to the Alto Alentejo, close to the border with Spain.

The announcement came at the presentation of Industrial Portugal Gateway (IPG), described by its promoters as an Iberian cluster to help companies in the defence industry, dual-use technologies and advanced manufacturing establish and grow. It is promoted by the Luso Defense Group, with the participation of NERPOR, the Portalegre regional business association.

"Several letters of intent"

NERPOR's president, Tiago Braga, told journalists that the cluster already has "several letters of intent" from companies that want to settle in the region, and that a contract had been signed that day with the Malaysian firm. He did not name it.

"It is an investment of many millions. I cannot give investment figures for this company now; I know it is more than 10 million euros and less than 20," he said, according to the Lusa news agency. A study will now be carried out to establish exactly what kind of equipment the company expects to bring to Portugal.

Nothing will be built overnight. "For this company or any other, we have two years to develop the industry," Braga said. "When a company comes here, from the market study to the first part being produced, we always think in terms of two years."

Why Portalegre

The promoters say they chose the region for its position on the Spanish border, the land available, its capacity to host businesses and its potential as a link between the two countries. Portalegre will be the cluster's first territory, with an operating base at NERPOR's premises; companies will then be able to choose where in the region they want to work.

Braga argued that recent geopolitical events have made Europe "quite an interesting market" for the defence industry, and that Asian companies with "cutting-edge technology" are waiting for a chance to enter it. "But we cannot deny that there are American companies and Canadian companies wanting to come here too," he said.

Jobs, and a trade fair in 2027

The Ministry of Defence was represented by the director-general for armament and defence heritage, António José Batista, who called it "very relevant" that the companies had chosen Portalegre. "This project could bring employment, quality employment. In defence, salaries are paid above the average and workers are qualified above the average, and that is what we have to bet on," he said, particularly for a region like Portalegre.

The presentation also launched the Iberian Defense Expo, a biennial Iberian trade fair for defence, security and dual-use technology organised by the Luso Defense Group. Its first edition is scheduled for 22 to 25 September 2027 in Portalegre.

For now, the cluster has one signed contract, an unnamed company and an investment range rather than a figure. How many jobs the Malaysian project will create, and where exactly it will be built, has not been announced.