Major orders in sight: Rheinmetall buys US defence supplier Loc Performance
Rheinmetall described the acquisition as a "strategic addition" and aims to strengthen its market position in North America and secure "high-volume, large-scale orders" through the takeover. By integrating experienced experts from Loc Performance into its internal supply chains for the "maintenance, repair, and upgrade of military combat vehicles," Rheinmetall expects benefits for both its U.S. and global business. Loc Performance has around a thousand employees and a production area of 1.7 million square meters.
Rheinmetall's U.S. military vehicle business is operated through American Rheinmetall Vehicles, headquartered in the state of Michigan. The acquisition of Loc Performance will enable the U.S. Department of Defense to be "supplied more effectively and comprehensively." The supplier offers vehicle components such as armor products, tracked systems, and suspensions, serving not only the U.S. government but also vehicle manufacturers in agriculture, mining, and construction.
"The United States is a key market for the coming years," explained Armin Papperger, CEO of Rheinmetall, justifying the planned acquisition, which is still subject to regulatory approvals. Jason Atkinson, CEO of Loc Performance, spoke of a "great" combination of the capabilities of both companies.
Rheinmetall plans to expand its operations in Michigan, specifically in the military vehicle sector, by integrating Loc Performance into its American Rheinmetall Vehicles business in Plymouth. This move aims to enhance their capabilities and better serve the needs of the U.S. Department of Defense.
With the acquisition, Rheinmetall hopes to leverage Loc Performance's expertise in producing vehicle components, including armor products and suspensions, further strengthening its presence in the North American market, which includes the Plymouth region.
