Elbit Systems (TASE: ESLT; Nasdaq: ESLT) shares are surging by nearly 8% on the highest volume of trading on the Tel Aviv Stock Exchange today. The company has returned to a market cap of over NIS 100 billion following an announcement by its Swedish subsidiary of the construction of a European production center for laser warning systems (LWS)-its first such facility in Europe. Elbit expects the plant to be operational as early as next year.
The systems in question are passive ones designed to provide early warning of laser threats, while integrating with existing Command and Control (C2) systems. Elbit already supplies such systems to militaries worldwide, and the current initiative focuses on "next-generation" systems. The center, which is expected to become operational in 2027, will support local integration, assembly, maintenance, and lifecycle support activities for Laser Warning Systems in Europe.
This move is intended to facilitate Elbit’s supply of equipment to European governments, supporting the continent-wide military buildup following the Russia-Ukraine war.
Once the facility is established, Elbit will be able to enhance local production capabilities, including the assembly, maintenance, and support of the laser systems. The company explains that this is "expected to contribute to higher availability, shorter delivery times, and strengthened support for European customers."
Elbit Systems Sweden, has been operational since 2020 and employs over 100 people.
Analyst Lior Vider, CEO of investment consultancy Profit Multiplier, said, "Establishing the center in Sweden is a smart move that shifts Elbit from the status of a foreign supplier to that of a full-fledged local European player. In today's defense industry, NATO customers demand not only advanced technology but also 'sovereignty,' requiring supply chains and manufacturing capabilities located within the continent."
He further notes: "This physical presence will give the company a significant advantage in future tenders; moreover, it provides an essential solution to the challenge of execution capacity. Distributing production loads from Israel to regional centers is the key to translating the company's massive backlog into revenue and stable cash flow in the coming years."
In recent years, Elbit Systems Sweden has supported the Swedish Armed Forces in advanced defense and digitalization programs, strengthening the company’s position as a long-term industrial and technological partner in the region.
Tobias Wennberg, CEO of Elbit Systems Sweden said, "This initiative represents an important step for us and reflects our commitment to strengthening our capabilities to develop, deliver and produce locally. It also aligns well with our core technologies and enables us to expand our scope going forward. Through the establishment of this center and the transfer of advanced technologies, we aim to support Swedish, European and NATO customers with reliable, long-term and locally supported self-protection solutions with secure and sovereign supply chains."
Published by Globes, Israel business news - en.globes.co.il - on October 14, 2026.
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