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Canadian Tech Firm ZenaTech Launches Ukrainian Drone Manufacturing Hub Amid Rising Defence Demand

Vancouver-based company establishes Phoenix Aero in Lviv to produce counter-unmanned aircraft systems for North American and Gulf allies.

Canadian Tech Firm ZenaTech Launches Ukrainian Drone Manufacturing Hub Amid Rising Defence Demand
(Financial Post / File)

A Vancouver-based technology company is ramping up its defence manufacturing footprint by establishing a new drone production facility in Western Ukraine, signalling growing confidence in the region's technical capabilities and stability amid geopolitical tensions.

ZenaTech, Inc., a Nasdaq-listed firm specialising in artificial intelligence drone systems and quantum computing solutions, announced today that it has formally registered Phoenix Aero LLC as a Ukrainian limited liability company. The subsidiary will be headquartered in Lviv, where it will manufacture and test counter-unmanned aircraft systems (counter-UAS) and the company's flagship Interceptor P-1 platform.

Strategic Positioning in Eastern Europe

The move represents a calculated expansion into one of Europe's emerging drone technology hubs. According to ZenaTech Chief Executive Officer Shaun Passley, Ph.D., the Lviv location offers strategic advantages that align with the company's growth trajectory.

"Establishing Phoenix Aero in Lviv positions us at the centre of one of the most dynamic real-world environments known for its ecosystem of drone companies and drone innovation," Passley stated. "We are establishing the foundation for a regionally anchored, cost-efficient production and testing capability designed to support the scale-up of our counter-UAS and Interceptor P-1 systems."

The Interceptor P-1 is engineered as a cost-effective defence tool, with a target price below $5,000 USD. The one-way expendable interceptor drone is designed to neutralise hostile unmanned aircraft, addressing a growing market demand from defence ministries across North America, European allies, and Gulf Cooperation Council nations.

Building a Technical Workforce

Phoenix Aero is currently recruiting engineers, drone pilots, manufacturing technicians, software developers, and business development specialists. The company banking on Ukraine's deep pool of technical talent and the region's established expertise in advanced manufacturing and software development.

Western Ukraine's relative stability, coupled with efficient access to European logistics corridors and proximity to Gulf markets, makes the location practical for scaling production and accelerating product validation timelines, company officials indicated.

Global Defence Market Expansion

The Ukrainian subsidiary forms part of ZenaTech's broader strategy to pursue defence opportunities globally. The company is actively pursuing contracts in the United Arab Emirates, Kingdom of Saudi Arabia, and Qatar, where demand for affordable counter-drone capabilities is accelerating.

Phoenix Aero will operate under ZenaTech's EMEA (Europe, Middle East, Africa) division, overseen from the company's regional headquarters in Dublin, Ireland. The structure reflects ZenaTech's vertically integrated approach, spanning hardware design, software and artificial intelligence engineering, and advanced manufacturing.

ZenaTech confirmed it remains committed to full compliance with applicable export controls and trade regulations governing defence technology. The company stated it will provide operational updates and milestone announcements over the coming months as the Ukraine facility ramps up production.

This article originally reported by Financial Post and GlobeNewswire on behalf of ZenaTech, Inc.

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