Three defence companies will begin manufacturing in the former Nedcar plant in Born, 18 months after the factory’s Mini production line for BMW closed down.

The tenants – Amsterdam-based drone maker DeltaQuad, battery producer Tulip Tech from Den Bosch, and Estonian robotics firm Milrem – have each signed 10-year leases with VDL, which owns the 450,000-square-metre site.

Defence minister Ruben Brekelmans announced the deals in Born on Monday, describing the move as an important step in turning the factory into a “flagship” for the Dutch defence industry. “More companies will follow,” he said.

The shift in focus comes as the Netherlands, like other Nato members, increases military spending in response to the war in Ukraine. The government has also encouraged Dutch high-tech firms to apply their expertise to defence technology.

Tulip Tech has already started work in Born. Its batteries can extend drone flight times by up to 100%, and the company plans to scale up from more than 100,000 units this year to around 1.5 million annually within 18 months, the Financieele Dagblad reported.

Milrem, which builds unmanned ground vehicles, expects to start production early next year, said managing director Julien den Ouden. The company employs about 430 people in 16 countries and aims to produce some 150 vehicles per year in Born.

Drone manufacturer DeltaQuad is still setting up its operations. “We currently make dozens of reconnaissance drones per month in Duivendrecht, but that will rise to hundred and, if needed, thousands,” chief executive Sander Smeets told the paper.

German arms producer Rheinmetall and Swiss-Dutch drone firm Destinus are also in talks with VDL and the defence ministry about using the Born site, the FD said.