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DISPATCH 03/26 · 9 Sep 2026
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News · China

Prodrone Is Building Its First Drone Factory Inside a Japanese Rifle Maker's Plant

Howa Machinery took equity in Prodrone and handed it a factory site, giving the Nagoya drone maker the production line it has never had and a route into a Defense Ministry it does not yet sell to.

Prodrone Is Building Its First Drone Factory Inside a Japanese Rifle Maker's Plant
FIG.01 · China Illustration. Generated key image, not a photo of the event.

A drone designer with no production line has borrowed one from a 119-year-old machinery firm that already sells rifles to Japan's Defense Ministry.

Prodrone will build its first mass-production plant on the grounds of Howa Machinery, the Nagoya drone maker announced on Sept. 7. Howa, a Tokyo-listed maker of rifles, machine tools and special vehicles, subscribed to a third-party share allotment in Prodrone at the same time. Neither company disclosed the sum. The site is Howa's plant in Kiyosu, Aichi. The two firms already co-develop a small military drone.

Frequently Asked Questions

What did Prodrone and Howa Machinery announce?

On Sept. 7, 2026 Prodrone said it will build its first mass-production plant on Howa Machinery's site in Kiyosu, Aichi, and that it had executed a third-party share allotment with Howa as the subscriber.

How much did Howa Machinery invest?

Neither company disclosed the amount, the share count or the resulting stake. Howa told the market the shares are worth less than 10% of its consolidated net assets and that the earnings impact is minor, per Reuters.

What is the "countermeasure drone"?

A small airframe carrying a 2 kg payload that the two companies are jointly developing. It was announced when Defense Minister Shinjiro Koizumi visited Prodrone's headquarters on May 20, 2026. Nikkei reported the pair will also jointly develop an interceptor drone; Prodrone's own release does not use that term.

Does Prodrone have a Japanese defense order?

None has been disclosed. Japan's Acquisition, Technology and Logistics Agency has already signed a mass-production interceptor contract with a different supplier, Terra Drone, following a Maritime Self-Defense Force demonstration.

What is the plant supposed to build first?

Prodrone's release names inspection, logistics and disaster prevention as the demand it will serve, and Japan's trade ministry certified the company's stable-supply plan for unmanned aircraft on Sept. 1. Nikkei reported prototyping of civilian logistics and survey drones starts before the end of 2026.

AI-generated summary, reviewed by an editor. More on our AI guidelines.

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Marcus Schuler edits BattlePolicy, a daily defense-technology brief connecting the companies and capabilities behind modern war to the contest among Europe, the US, Russia, and China.

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