Hungarian Startup Plans US Foothold With Non-Military Drones

ABZ Innovation, a Hungarian startup, is planning to begin non-military drone production in the US over the course of next year after expanding output at home, according to its chief executive officer.

ABZ opened a new production facility in Szentendre, north of Budapest, on Thursday, where it plans to ramp up production of heavy-duty agricultural and industrial drones, Karoly Ludvigh said in an interview. The facility will eventually produce 3,500 drones annually in two shifts to address an order backlog.

While the Russia-Ukraine and US-Iran wars have boosted demand for military drones, ABZ plans to focus on civilian use, which it sees as a niche market for clients looking to diversify away from China.

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“It’s a constant topic for us,” Ludvigh said about whether ABZ may expand to dual use to include military drones. “But we don’t have to deal with it because all of our capacity is completely booked for our civilian drones.”

ABZ plans to set up a factory in the US next year, a move the CEO said would shield the company from potential tariffs.

The startup’s products can be used in various ways from spraying crops to cleaning buildings, cutting costs for farmers and for maintenance. Its biggest market is the US, accounting for more than a third of the planned 600 drones the company will sell this year, Ludvigh said.

ABZ received €7 million ($8 million) from venture capital firms earlier this year. Ludvigh declined to give the valuation from the funding round.

Another financing round is planned for next year to help cover the cost of expansion, the CEO said, with an initial public offering among the options under consideration for later.

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