Rheinmetall acquires an American manufacturer of vehicles for the US Army

German defense giant Rheinmetall has acquired an American manufacturer of automotive equipment that was produced for the US Armed Forces.

Rheinmetall announced this on its official website.

According to the company, with a strategic acquisition in the USA, the Düsseldorf-based Rheinmetall Group is strengthening its production capacities in the USA.

On 13 August 2024 Rheinmetall signed an agreement to acquire all equity interests in Loc Performance Products, LLC.

The investment is worth $950 million, which will allow Rheinmetall’s US subsidiary to expand its capacity and acquire a staff of 1,000 employees working at Loc.

This step is related to the German company’s participation in two high-volume major U.S. Army orders, which offer the opportunity to conclude multibillion-dollar contacts.

The first tender is being held by the US Army to purchase a new infantry fighting vehicle to replace the aging Bradley IFV fleet.

If Rheinmetall wins, it will produce 4,000 XM30 infantry fighting vehicles, with a total value of about $45 billion.

In addition, the company participates in the Common Tactical Truck (CTT) program.

As part of this program, Rheinmetall’s U.S. subsidiary is seeking a contract to supply the U.S. Army with 40,000 trucks worth up to $14 billion.

Militarnyi previously reported that the German defense giant Rheinmetall had acquired a majority stake in the business of Resonant Holdings Ltd, a leading South African specialist in plant engineering for chemical applications.

The acquisition of this South African company will significantly increase the German giant’s capabilities and expand the production of ammunition.