DroneShield Ltd (ASX: DRO) shares are having another strong session on Tuesday.
In morning trade, the counter drone technology company's shares are up 8% to $3.57.
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Why are DroneShield shares racing higher?
The catalyst for this has been news that the company is significantly expanding its research and development (R&D) operations in the United States.
According to an announcement, the company believes this move emphasises its commitment to expand its R&D and testing capabilities and will result in the more than doubling of its workforce in the U.S.
Over 30% of the new roles will be dedicated to software development and further strengthening its artificial intelligence (AI) team and capabilities.
As part of its strategic investment, DroneShield will be adding a second location to its U.S. headquarters in Virginia. It feels that this reinforces its dedication to breakthrough technology and better positions the team to meet the rapidly growing global demand for advanced CUxS solutions.
This U.S. expansion is hot on the heels of recent announcements revealing the expansion of production facilities in Australia and a new office in the European Union. It notes that this is part of a concerted effort to broaden its international footprint and establish a stronger physical presence near customers in key markets.
Crucial expansion
Commenting on the news, DroneShield USA CEO, Matt McCrann, said:
As we continue to scale our operations globally, this expansion in the U.S. plays a crucial role in enhancing our ability to innovate and deliver advanced solutions for the evolving defense industrial base right here in the U.S. We're investing in the future of defense, and our growing footprint and impact in the U.S. market directly supports that effort.
Vice President of Sales and Business Development, Tom Branstetter, adds:
We're not just expanding our operations, we're doubling down on our commitment to providing best-in-class counter-drone solutions. This investment enables us to be more responsive to the growing needs of our U.S. customers across the various sectors we serve.
Management points out that combined with expanded R&D and planned U.S. production initiatives, this positions DroneShield to support the U.S. Department of Defense's push for fast, risk-embracing acquisition of cutting-edge counter-drone solutions.
DroneShield's Chief Product and Technology Officer, Angus Bean, commented:
Expanding our U.S. technology team strengthens our ability to support critical programs and deliver advanced solutions with greater speed and precision. This investment ensures end users benefit from responsive, real-time support and the depth of expertise required for mission success.
DroneShield shares are up approximately 370% since the start of the year.
