Defense investments are increasing everywhere in Europe. That is good news for Advionics in Oostkamp, a developer and manufacturer of radar systems. “We are receiving more and more orders, extending to at least 2030,” says CEO Jan Bonte.
There is a hive of activity at the large construction site next to the Advionics industrial hall. Here, close to the E40 highway in Oostkamp, a new production space of over 6,000 square meters spanning two floors is being built. Construction began at the end of 2024. When asked when it needs to be completed, CEO Jan Bonte answers with a laugh: “Today. No, I hope the industrial hall will be in use by the end of this year. The expansion is necessary for extra production capacity. Part of it will serve as office space and for research.”
Things are moving fast for Advionics, which develops and builds high-frequency radar systems for both civilian and military applications. In 2023, revenue rose by 28 percent to 37 million euros. “When I co-acquired the company in 2016 via a management buyout, we had a turnover of 17 million euros,” recalls Bonte. “Ten years ago, we were loss-making. That is the past. The figures for 2024 are not yet final, but both revenue and profit are on an upward trend.” In 2023, Advionics booked a profit of 4.7 million euros; in 2022, that was 1.68 million euros.
Planned Scale-Up
The defense sector is one of the buyers of this technology. Since Russia’s invasion of Ukraine in 2022, more and more defense orders have come in. “For two years now, we have noticed rising demand. And I’m not talking about a 10 percent increase, but a doubling and more,” explains Bonte. “Demand for certain radar technologies has increased by a factor of ten. These are not just assignments for two years. Increasingly, these are orders extending to 2030. The growth will therefore continue for years.”
“The clients asked if we could keep up with demand. We put the puzzle together internally, and the answer was yes.” Advionics received the green light for the investment in the new production hall from its majority shareholder, the private equity firm Waterland (see box From Siemens to Waterland). Bonte: “The scale-up had been planned for a while. There was already too little space before this. We are investing in additional machine capacity with an emphasis on automation, robotization, and productivity enhancement.” There was space available for expansion next to the site. Advionics is using half of it for the new building. The construction of an additional hall is not ruled out in the long term. Bonte: “The increase in European defense investments is not a flash in the pan. Usually, you expand based on buy-and-build, but we made the choice proactively. We already know that the growth will persist. It is a strength that all activities are located at one site. There is a single logistics flow.”
Block of Aluminum
Advionics also views the new industrial hall as a signal to the defense sector that it is capable of building extra capacity. “Advionics is a firm that always enters into cooperatives. We are too small to roll out entire projects alone,” emphasizes Bonte. “We need partners, and we are now making that known to the major players in Belgium. I expect the defense industry to double in the coming years. Our company wants to contribute to that.”
The West Flemish company operates in a market where many large radar manufacturers are active. Germany’s Hensoldt, France’s Thales, Britain’s BAE Systems, Italy’s Leonardo: these are the top tier of European defense companies. “Every European country has its major radar manufacturer, and a number of players engage in subcontracting. We try to make a difference with our agility and our sixty years of experience in high-frequency electronics,” says Bonte. “Advionics has strong vertical integration and masters the various production technologies. We start from a block of aluminum and turn it into a complete radar system. A client has a complex product in mind, and then you need someone who can rapidly industrialize it, scale it up, and deliver it in large quantities. That is an asset of Advionics.”
The company supplies the United States, Germany, and the Belgian army, among others. But in reality, all NATO countries are eligible candidates. In one of the halls, an innovative IFF antenna is under construction—the company’s showpiece. This is installed on naval vessels such as frigates. A few years ago, Advionics secured several large contracts to supply such an antenna to the F123 and F126 frigates of the German Navy. A dome protects the antenna against severe weather conditions and corrosion by sea salt. Such an IFF antenna rotates electronically with 64 antenna radiating elements instead of mechanically. It helps naval vessels determine whether an object is hostile or not. The range of this radar system extends to 360 kilometers.
Role in Civil Aviation
Like many other defense-related companies, Advionics relies significantly on exports. In recent weeks and months, the Flemish defense sector sounded the alarm through the technology federation Agoria: strict regulations for export licenses are a hurdle. As are the restrictions on granting subsidies for research and development to defense companies.
“Improvements are indeed possible regarding export licenses,” acknowledges Bonte. “It sometimes takes a long time to obtain them. Yet I see a turning point in the perception of defense-related companies. The negative connotation is disappearing. To receive subsidies for research and development, it remains useful for companies if they can demonstrate that they have dual-use activities: both civilian and military.”
Advionics is well-positioned in that regard. Its high-frequency products are used not only for defense but also in civil aviation and the medical sector. “Companies in civil sectors see opportunities in the military growth market,” notes Bonte. “But we have walked the opposite path. We also use military technology and innovation for civilian purposes. That is how we entered the civil aviation and space sectors. There is more travel than ever since the end of the corona crisis.
More intense air traffic means more radars are needed so that aircraft can fly in structured corridors.”
Treating Cancer
In the medical sector, the company produces the basic modules for proton therapy used for the treatment of cancer. Bonte: “That technology contains a great many high-frequency modules, which we build. You can compare it to the high-frequency technology for making a radar. Advionics continues to focus on these various activities, even though the defense branch is booming.”
Asked about the biggest challenge in the coming years, Bonte does not have to hesitate long: employees. “We are going from 200 to 250 people in a period of three years. That personnel is difficult to find. The company invests a lot of energy in their training.” This involves very diverse profiles, from technically educated people from VTI schools to bachelor’s graduates and engineers. Advionics is searching across the full spectrum of technicians, and especially for specialists in electronics and electromechanics. In addition, there is a need for machine operators willing to work in shifts. Advionics is also short of employees who possess fine motor skills for assembly and soldering. Bonte: “That is done mostly by women. They have finer motor skills and sustain that work longer.”
From Siemens to Waterland
Advionics started in 1961 as a manufacturer of radar electronics for Siemens. Around the turn of the century, Siemens wound down several activities. In 2001, the company came into the hands of Airbus and remained active in avionics. “The common thread throughout the activities is high-frequency electronics,” explains CEO Jan Bonte. “Even under Airbus, we continued making radar equipment.”
In 2014, Airbus divested those activities worldwide, and the private equity firm Parter Capital became the new owner. In 2016, Bonte executed a management buyout with a colleague and merged Advionics with Intersoft Electronics in Olen. The latter supplies software for air traffic control systems, including radar test devices and functional upgrades for radars. Bonte: “Intersoft was a development firm; we were primarily a production company of radar equipment in large series. By merging, we reconciled production capacity, operational efficiency, and the possibilities to develop new innovative products.” In 2019, Waterland came on board as the majority shareholder.
Drone Measurements are Much Cheaper
In the defense branch, there is increasing attention on the role drones can play. This also has an impact on companies like Advionics, starting with their use as a tool for measurements. The SkyRF drones from sister company Intersoft Services are suitable for this.
“To check if a radar was functioning properly, test flights used to be required. Fighter jets or airplanes were hired for that. That was exorbitantly expensive. Now we perform measurements with drones, which is much cheaper. Intersoft Services has jumped on the bandwagon to carry out measurements and certifications using drones. On the other hand, we make radars that can detect drones.”