When it comes to developing the defense-industrial complex, it is not just about the weapons themselves, but about the capability to build high-quality production. This allows manufacturers to scale and improve any product. This is particularly important when discussing Ukraine’s role in the global arms market.

One of the key partners in this process is the American company D&M Holding, which specializes in establishing turnkey defense manufacturing facilities.

The history of the American manufacturer’s cooperation with Ukraine began before Russia’s full-scale invasion of Ukraine in February 2022. In 2020, D&M Holding won an international bid to build small arms ammunition production lines, replacing capacities lost due to the war between Russia and Ukraine.

During the Eurosatory 2026 international exhibition in Paris, Militarnyi spoke with James Jones, Vice President of Business Development D&M Holding, and Nico Woods, the company’s Director of Business Development. They explained how American technologies are helping Ukraine supply the front line and why Ukrainian gunsmiths will soon be dictating global trends.

Launching Production in Ukraine

Currently, the facility utilizing D&M Holding’s production lines supplies the Ukrainian Defense Forces with necessary small arms ammunition. For security reasons, neither the calibers, production volumes, nor the name of the enterprise are disclosed — what matters is that it is operational and delivering high-quality products.

At the start of the full-scale invasion on February 24, 2022, the American equipment had already been delivered to Ukraine, but production had not yet started. Specialists from the US evacuated but returned a few months later. 19 volunteers from D&M Holding, working alongside Ukrainian personnel, completed the deployment of the production lines and launched the manufacturing process.

“What was created during those months was no longer a buyer-seller relationship. It became a true partnership,” says James Jones, the company’s Vice President of Business Development. “Working shoulder to shoulder, not always understanding each other, our specialists and the Ukrainian workers developed a sign language, learned the most important words for each machine, and launched production. Together, we completed the construction and certified the product that the Ukrainian Armed Forces needed most. Our experts consistently returned to ensure proper quality. I must say, it has always been high, even exceeding expectations. The workers at the Ukrainian facility, although beginners in this field, do not want to make mistakes, so they produce items of perfect quality. Their testing and quality control laboratories are second to none.”

Currently, the Ukrainian company where the American line was deployed produces small-caliber ammunition.

D&M Holding’s cooperation did not stop with the first ‘delivery.’ and they are now helping to implement a significant capacity expansion. All further cooperation continues with the same Ukrainian manufacturer, which is constantly increasing its production volumes.

Prospects: Propellant Production

A critical ‘bottleneck’ for both Ukraine and the entire world remains the supply of raw materials for ammunition and artillery. This refers to the production of powders for small caliber and large-caliber ammunition, and propelling charges, particularly for 155 mm shells.

D&M Holding does not plan to manufacture the artillery shells themselves in Ukraine but is considering the possibility of deploying production facilities to work with powders. The company is currently evaluating opportunities to establish such an enterprise.

“At its base, a propelling charge is cellulose plus nitric and sulfuric acids. What makes us optimistic about Ukraine is its vast forestry sector. Wood pulp could become a component for powder manufacturing,” emphasized Nico Woods, D&M Holding’s Director of Business Development

He also added that this involves the production of triple-base powder, which is used for propelling charges in long-range ammunition and extends the service life of artillery barrels.

“Triple-base powder not only increases range but also extends barrel life. Ukraine is famous for its Bohdana self-propelled howitzer, but no one in the 21st century anticipated such continuous use of artillery. Many thought artillery was a thing of the past, but reality proved otherwise. Ukraine has shown that the whole world now needs powders, and there are very few suppliers. So why not build such a factory in Ukraine, where there is a massive demand for powders?” Nico Woods stressed.

Such production would allow Ukraine to establish a complete ammunition manufacturing cycle and eliminate its dependence on imports.

“Anti-Drone Ammunition is the New Global Standard”

A key requirement of the Russo-Ukrainian war is countering drones. Currently, the military constantly uses weapons with anti-drone rounds while moving to positions and executing combat missions. D&M Holding is collaborating with two Ukrainian companies that develop such anti-drone ammunition.

“I think we will see some Ukrainian anti-drone technologies for small calibers expand beyond Ukraine. There is already significant interest in them. Using standard ammunition to combat drones is more difficult, but situations will arise all over the world where this Ukrainian experience will be highly relevant,” noted James Jones.

Therefore, this is not a ‘situational trend’ where manufacturers solely create solutions to respond to the Russian threat, but rather one of the solutions that Ukrainian gunsmiths will be able to export effectively.

“Given the Ukrainians’ experience and the inevitable influx of the global defense industry after the victory, I believe that Ukraine, from an industrial standpoint, will truly become the arsenal of the free world for the next 30-50 years. And you will supply your products to armies all around the globe,” concluded the company’s Vice President of Business Development.

Thus, D&M Holding views Ukraine not merely as a defending nation, but as a future leader in the global defense market.