Rheinmetall Plans to Establish ATACMS and Patriot PAC-3 Missile Production in Europe

The German company Rheinmetall, in collaboration with the American Lockheed Martin, plans to establish large-scale production of ATACMS and Patriot PAC-3 missiles in Europe.

Hartpunkt reported on this.

As Rheinmetall’s CEO Armin Papperger explained, negotiations are currently underway to create a joint venture, in which his company intends to acquire a 60-percent stake.

The reason for this decision is the lack of production capacity in the United States to meet European demand. Therefore, both partners aim to create a European “Center of Competence” for the missiles.

“Sometimes it takes ten years to receive missiles from the United States, and that’s too long,” Papperger explains.

In early May, it was announced that the companies had signed a memorandum outlining the creation of a European center of competence for the production and distribution of missiles and missile systems, aimed at strengthening the security and independence of Europe.

The possible candidates for production listed the ATACMS, GMLRS/GMLRS-ER, Hellfire, JAGM, and PAC-3 missiles.

According to the CEO of Rheinmetall, the production line will be ready in 12-13 months. Final assembly will also take place there. Research and development work will be carried out jointly with Lockheed Martin, which means that intellectual property rights will also be based in Europe.

However, the project requires approval from the U.S. government, which both partners are working on. Papperger expects that after missile engine production begins next year, missile production will start in 2027. Production will ramp up in 2028 and 2029.

Lockheed Martin is currently halting ATACMS production as it begins ramping up production of PrSM, a missile that will replace ATACMS in the U.S. arsenal. Therefore, the possibility of fulfilling the remaining U.S. contracts at the new plant is being discussed. Papperger explained that the plan is to directly acquire the ATACMS production lines from the U.S. for this purpose.

He predicted that the capacity for producing new engines will quickly be utilized, especially considering Ukraine’s high demand for Patriot missiles. According to his estimates, the current missile needs are as follows: 600-800 ATACMS, about 2,500 GMLRS, 5,000 Hellfire, 5,200 JAGM, and 250-300 PAC-3 MSE per year.

In response to a question about the possible creation of a “Center of Competence” for missile production, the American company Lockheed Martin stated that it is working with its European allies to explore cooperation opportunities. According to company representatives, since negotiations are still ongoing, any details provided are preliminary and unofficial.

It is worth noting that a missile production plant for Patriot systems is already under construction in Germany – an MBDA plant in the town of Schrobenhausen. The plant is planned to produce GEM-T missiles ordered by European governments. These missiles have a longer range against aerodynamic targets compared to the PAC-3 MSE, but are less effective at intercepting ballistic missiles.

In addition, Spanish companies Sener and Oesia-Tecnobit have been granted permission to produce components for the American PAC-3 MSE missiles for the Patriot air defense system.