Defence groups plan first ATACMS production site outside the US
Lockheed Martin (NYSE:LMT) and German defence manufacturer Rheinmetall (TG:RHM) have signed a memorandum of understanding to jointly produce ATACMS missiles in Germany, marking the first time the short-range ballistic missile would be manufactured outside the United States.
In a joint statement released on Tuesday, the companies said the agreement has the backing of both the US and German governments and represents the first step towards creating a joint venture that would establish a European production, integration and distribution centre for ATACMS missiles.
The planned facility will supply NATO member states as well as other allied nations.
Production to be based at Rheinmetall’s German facility
Rheinmetall Chief Executive Armin Papperger said the guided missile systems will be manufactured at the company’s artillery plant in Unterluess, located in northern Germany.
The agreement was signed during the NATO Industry Forum, held alongside the alliance’s summit in Ankara.
NATO allies seek to strengthen defence manufacturing
The partnership reflects wider efforts by the United States and its European allies to increase defence production capacity as governments work to rebuild weapons inventories depleted by the conflicts in Ukraine and the Middle East.
The proposed joint venture is intended to strengthen Europe’s defence industrial base while improving the availability of advanced missile systems for allied countries.