The boss of Britain's largest arms manufacturer has said that intensifying global conflicts will mean countries will spend the next decade restocking their arsenals.
Chemring, which describes itself as a major supplier to NATO, said countries were reacting to the wars in Gaza and Ukraine and “an increasingly assertive China.”
The company wants to quadruple its already record-level sales to nearly £1 billion by 2030.
“Rising geopolitical tensions around the world are creating a virtuous cycle of radical rearmament that is expected to continue for at least the next decade,” said Chemring CEO Michael Ould.
The company builds aerospace, defense and security technologies for countries around the world, and also develops components for space travel and “electronic warfare” products.
The company announced the forecast in its results for the six months to April 30, which showed sales rose 8% to £223.4m.
However, pre-tax profits fell by nearly a third to 15.2 million pounds, which the company said was due to bad weather at one of its Tennessee facilities and costs related to its pension scheme.
Describing the current situation, Kemmling said European allies, both NATO members and non-NATO countries, are increasing defense spending to replenish their own stockpiles after providing support to Ukraine, which is now in its third year of war with Russia.
He also pointed to Chancellor Rishi Sunak's recent announcement that defence spending will increase to 2.5 per cent of gross domestic product (GDP) by the end of the decade.
Labour leader Sir Keir Starmer has also pledged, without setting a deadline, to increase spending to 2.5% of GDP if his party wins the general election.
Total UK defence exports are set to surge 70% to £11.2 billion in 2021-2022, driven by “new contracts, mainly to the Middle East and Europe”, according to the latest government figures.
Some political parties and campaigners have raised concerns about the role of British defence companies in overseas conflicts.
The SNP, Liberal Democrats and protest groups have called on the UK to stop selling arms to Israel.
Foreign Secretary Cameron said last month that an arms embargo would only strengthen Hamas, adding that Britain supplies just 1% of Israel's weapons.
The ministers said all export license applications for military equipment and related items would be reviewed against a set of criteria, including “the risk that the items would be used to carry out or further domestic repression.”