The Spanish defense industry is experiencing a growth phase linked to increased military budgets, the launch of new programs, and the pursuit of greater industrial and technological capacity within Spain and Europe. Aragón is trying to find its position in this landscape by relying both on companies that have been working for the Armed Forces for decades and on an industrial network that can supply components, materials, equipment, and services to major manufacturers.
This movement has gained a more organized dimension with the creation of the Defense Hub of Aragón, driven by participation from the regional government, the Zaragoza City Council, and business clusters related to aeronautics, logistics, and technology. As of May 2025, the hub had around 60 registered companies and showcased one of its first national displays at the International Defense and Security Fair of Spain (FEINDEF), held in Madrid. Aragón attended for the first time with its own institutional space and representation from 33 companies: 15 in the community pavilion and another 18 with independent stands.
The list helps to better understand what developing a defense industry in Aragón could mean. Alongside companies directly identified with the sector, there are manufacturers specializing in steel, rubber, composites, electronics, generators, trailers, structures, mobile equipment, machined components, technical textiles, or technological solutions. In other words, the industrial chain necessary to build and maintain a military system extends far beyond the company that delivers the final product.
Instalaza, the most established defense company in Aragón
Among the Aragón-based companies historically linked to the sector stands out Instalaza, founded in 1943 and engaged in defense activities since the 1950s. The company operates four facilities in Zaragoza, employs over 250 professionals, and has a commercial presence in more than 40 countries. According to its own data, about 30% of its workforce is involved in research and development, with the company allocating between 8% and 12% of its sales annually to R&D activities.
Its specialization lies in systems primarily designed for infantry. The company develops and manufactures weapon and ammunition systems and serves as one of the clearest examples of an Aragón-based company whose main activity is directly integrated into the defense market.
From mobile equipment to vehicles and logistics
Another Aragón-based company with a solid track record is ARPA Mobile Campaign Equipment, specialized in deployable solutions and systems designed to operate outside permanent installations. Its activities encompass areas such as field hospitals, kitchens, accommodations, logistics, water, energy, and mobile infrastructures—capabilities that have applications in both civilian and military contexts.
The business landscape expands with companies such as Lecitrailer Defence, linked to transport and logistics solutions; Hispano Vema, specialized in maintenance and recovery equipment; and Dagartech, a manufacturer of generators and energy generation solutions. In a military deployment, operational capability does not solely depend on vehicles or weapon systems. It is necessary to transport equipment, provide electricity, maintain vehicles, establish temporary installations, and ensure supplies, which incorporates into the defense chain industrial activities that also operate regularly in civilian markets.
Up Lifting and the development of unmanned systems
Among this new generation of companies is Up Lifting Vertical, a company based in Huesca specializing in unmanned aerial systems. Its presence is representative of one of the sectors that is evolving the fastest, both due to the increasing use of drones and the parallel development of systems designed to detect and neutralize them.
The company has also announced plans to expand its production capacity in Huesca. Information published in late 2025 indicated a planned investment of around 10 million euros, with the creation of more than 30 jobs. The company noted that approximately 80% of its production was related to military applications.
A broader industrial chain than it seems
The composition of the Aragón representation at FEINDEF helps to understand how this market currently operates. A large military program may require metal and machined structures, composite materials, electronics, power generation systems, heating, communications, software, technical textiles, trailers, logistical solutions, and numerous components manufactured by specialized suppliers.
This allows companies that did not originally start as defense companies to become suppliers to the sector if their products, processes, and certifications meet the required standards. For many SMEs, entry does not occur through the manufacture of a complete system, but by integrating into the supply chain of another company that subsequently incorporates that component into a vehicle, an aircraft, a deployable installation, or any other equipment.
Materials, electronics, and advanced manufacturing
Part of the potential for the Aragón industry lies precisely in activities already part of the productive structure of the community. Metallurgy and machining can supply parts and structures; composite materials allow for the development of lighter components; electronics are present in sensors, communications, and control systems, while energy generation and logistics are essential for operating equipment and installations outside of permanent bases.
New materials constitute another field of development. Spanish research in ballistic protection, composites, ceramics, and polymers illustrates how innovation in defense is extending to technologies that may also come from technological centers and specialized companies that traditionally did not belong to this market.
Logistics: a capacity particularly linked to Aragón
Aragón also has a consolidated position in logistics, an activity that has a significant weight in any military structure. The transportation of vehicles and goods, storage, supply maintenance, and the ability to deploy resources are part of the ordinary operation of the Armed Forces.
The presence of companies related to transport, trailers, containers, mobile equipment, and power generation within the Aragón group that attended FEINDEF demonstrates this connection between existing civilian capabilities and defense market needs. The industrial opportunity does not necessarily require creating entirely new activities but identifying what knowledge and products developed for other sectors can be adapted to military or dual-use requirements.
From business presence to contracts
The participation of 33 companies in FEINDEF 2025 serves as an indicator of existing business interest but does not alone measure the economic weight that defense currently has in Aragón. Some of these companies maintain a solid relationship with the military market, while others develop dual-use technologies or are exploring possibilities.
