By Giulia Segreti

ROME, March 20 (Reuters) - Europe's top missile maker MBDA will invest in production and hire more workers at its Italian unit this year in order to lift output and speed up deliveries, seeking to hold on to its central position in the sector and fend off new competitors.

In a booming defence industry, the European Union has identified air and missile defence as one of the priority projects for funding by member states, after the heavy use of missiles in the war between Ukraine and Russia.

"The market has widened but new players have come into the game. Italy must be able to maintain its front-row position in the European defence market and increase volumes, not only in its domestic market, but also through exports," MBDA Italy Managing Director Giovanni Soccodato said on Thursday.

Often cited as a successful example of pan-European cooperation in the defence sector, the group is formed by France's Airbus AIR.PA and Britain's BAE Systems BAES.L, both with a 37.5% stake, and by Italy's Leonardo LDOF.MI, with the remaining 25%.

Its competitors include U.S. groups RTX RTX.N and Lockheed Martin LMT.N, and Saab SAABb.ST of Sweden.

"MBDA in Italy will continue a path of important organic growth this year," Soccodato said.

He added the unit would see further growth in orders in 2025 after recording higher-than-expected new contracts and revenues, and a rise of over 40% in its order portfolio in 2024.

As missile demand surges, the company in Italy has already started changing its industrial organisation, bringing forward delivery times for some products, increasing production in different ways, and expanding its offices in Rome.

In 2025 the group plans to take on 300 new employees on top of its current 2,000, widen its research labs in Rome and set up a new production line at its site close to the southern city of Naples, where it has already bought new land.

It also plans to set up a new line at its site in Noceto, near the northern city of Parma.

Soccodato added the group was looking at switching over to double sourcing for some components - to increase numbers and spread risk - and was studying new ways of ordering and stockpiling required raw materials.

(Reporting by Giulia SegretiEditing by Keith Weir)

((Giulia.Segreti@tr.com; +39.06.80307714;))