Ukrainian defence manufacturer Fire Point is developing a new air defence system aimed at intercepting ballistic missiles at a cost below $1 million per strike, positioning it as a lower-cost alternative to existing Western systems, a senior company executive said.

The company, known for producing the Flamingo cruise missile, is in discussions with European firms to launch the system as early as next year, with an initial interception target set for the end of 2027, according to co-founder and chief designer Denys Shtilierman.

The initiative comes as governments expand air defence capabilities amid ongoing conflicts in Ukraine and the Middle East, which have driven demand for missile interception systems. Existing platforms such as the U.S.-made Patriot system have faced supply constraints due to extensive deployment, while Europe’s SAMP/T system remains limited in production.

Shtilierman said current interception costs remain high, noting that systems like Patriot developed by Raytheon Technologies and Lockheed Martin often require multiple missiles per target, each costing several million dollars.

Fire Point’s objective is to significantly reduce these costs through technological adaptation and battlefield experience gained during the war with Russia.Ukraine’s defence sector has expanded rapidly since Russia’s 2022 invasion, with domestic companies leveraging operational experience to develop cost-efficient systems.

Fire Point has emerged as a leading producer of long-range drones used in strikes deep inside Russian territory and is now extending its capabilities into missile and air defence technologies.The company is also advancing development of ballistic missile systems.

Shtilierman said its FP-7 missile, with a range of about 300 kilometres, is nearing initial deployment, while a larger FP-9 missile capable of reaching up to 850 kilometres is entering testing. The latter could potentially place Moscow within operational range.

Missile analyst Fabian Hoffmann of the Norwegian Defence University College said that wider deployment of such systems could strain Russian air defences, although he noted that the timeline for a new interception system by 2027 remained ambitious.

Fire Point is simultaneously seeking regulatory approval for a proposed $760 million investment by a Middle Eastern conglomerate, which would value the company at approximately $2.5 billion. Ukrainian authorities are expected to decide on the deal by October, as all defence-related investments remain subject to government oversight during wartime.

Ukrainian media have identified the prospective investor as Edge Group, although neither the company nor regulators have publicly confirmed the transaction. Shtilierman said the investment could enable expansion into satellite launch capabilities, including plans for a low-orbit satellite network supported by a potential launch facility in the United Arab Emirates.

He said the company has already developed technology for solid rocket boosters and is in preliminary agreements with Western partners, although the project remains at an early stage.Fire Point is also seeking approval to export its drone systems to Gulf countries, where demand has risen amid heightened regional tensions.

The company said it has the capacity to produce up to 2,500 long-range drones per month, with each unit costing around 50,000 euros.

Production of its Flamingo missiles, currently limited to three units per cycle at a cost of about 600,000 euros each, is expected to increase once a new in-house engine enters mass production and a rocket fuel plant in Denmark becomes operational later this year.

Shtilierman said export of missile systems remains more restricted due to regulatory barriers, though interest from international buyers continues to grow as countries seek cost-effective defence solutions.