Greek Defense Firm ELVO Faces Challenges Under New Ownership

Greece’s defense vehicle manufacturer ELVO, long known for producing military vehicles, Leopard tanks, buses, and trolleys, has remained largely inactive since its privatization five years ago. The company has posted consecutive losses, with minimal revenue primarily from scrap sales, despite promises of revitalization from new owners.

ELVO’s privatization traces back to 2020, when 79% of the company was sold to a consortium including Israel-based SK Group and Plasan Sasa, along with a smaller Greek partner. The sale came after years of financial losses and attempts by previous governments to find private investors. At the time, officials highlighted that ELVO and other state-owned industries had cost taxpayers billions of euros.

Since the sale, the company’s financial performance has been weak. In 2021, ELVO reported revenues of €493,437, mainly from scrap, with pre-tax losses approaching €1 million. 2022 and 2023 saw similar patterns, with losses exceeding €1.5 million in the latest report.

Despite these challenges, speculation about potential investors and strategic partnerships has persisted. SK Group, led by Israeli businessman Samy Katsav, has now become the sole owner of ELVO. Katsav, a veteran of Israel’s defense sector with decades of experience in military manufacturing and shipbuilding, aims to use ELVO as a platform for expanding his group’s activities into Europe.

SK Group’s announced plans include leveraging its expertise in defense technology and private sector revitalization to transform ELVO into a major center for vehicle production and exports. The company’s Thessaloniki-based factory covers 273 acres and specializes in military, civilian, and specialized vehicles. Katsav’s vision positions ELVO as both a European operational hub and a potential strategic partner for Greece in defense manufacturing.

While the new ownership marks a potential turning point, industry observers remain cautious. Rumors of further ownership changes continue to circulate, though no official confirmations have emerged. For now, ELVO’s fate hinges on whether SK Group can turn ambitious plans into tangible production and export successes.

Source: Tovima.com