The German defense concern Rheinmetall intends to expand its presence in the United States, so that by 2027 the revenue of its American “branch” to increase. American Rheinmetall Vehicles (ARV) has now acquired Loc Perfomance, a manufacturer of components for armored fighting vehicles, ARV US managing director Matthew Warnick announced.
„The purpose of the acquisition is to strengthen Rheinmetall's position in the American market, and we are doing this in different ways,” he said in an interview with the American portal Breaking Defense. According to Warnick, the deal cost Rheinmetall $950 million, and as a result, ARV will add another 1,000 engineers to its staff. The portal adds that Rheinmetall is seeking to “capture a greater market share in the United States” by fighting to win tenders announced by the Pentagon.
Warnick added that after buying Loc Perfomance, ARV expects to earn about $850 million. USD, and by 2027 “this figure may exceed 1 billion. USD“. “This target is a combination of the existing order book that we are currently filling with the ability to export from Loc Perfomance facilities,”, he said. The ARV director also said that Rheinmetall management wants to create a “center of excellence in the field of military equipment” in the US, but that will depend on how quickly the company can ramp up military production in the country.
The BNS agency previously reported that Rheinmetall intends to build a munitions plant in Lithuania in 2026. The German concern is profiting a lot from the conflict in Ukraine, expecting a significant increase in profits in the future. In 2023 the company's turnover increased by 12% to 7.1 billion. USD, and the group's net profit increased by 9%, to 0.6 billion. USD.