Rheinmetall, a German defense company, is expanding its presence in the U.S. by acquiring the American supplier Loc Performance for $950 million. This move aims to strengthen Rheinmetall’s ties with the U.S. military and increase its industrial base in North America.
Rheinmetall’s strategic U.S. expansion
Düsseldorf-based defense giant Rheinmetall has announced its acquisition of Loc Performance, a U.S. supplier located in Plymouth, Michigan, for $950 million (approximately €870 million). This DAX-listed company revealed this move on Tuesday evening, emphasizing that the acquisition is intended to deepen its business relationship with the American military. The deal will also expand Rheinmetall’s industrial footprint in the U.S., providing additional avenues for its technologies in North America.
Rheinmetall sees this acquisition as a strategic step to secure more contracts in the world’s largest defense market. By integrating Loc’s operations and its approximately 1,000 employees, Rheinmetall aims to enhance its product offerings for military vehicles and bolster local production capabilities—a priority for the U.S. government. Loc Performance operates four plants in Michigan and Ohio, producing drivetrains, suspension systems, track systems, rubber and armor products, and vehicle platform structures. In addition to its military clients, Loc also serves the construction and agricultural industries.
Potential advantages in major U.S. military contracts
The acquisition is expected to give Rheinmetall a competitive edge in two significant U.S. military contracts. The company is one of two finalists in the prototype phase of the XM30 program, which involves the construction of a new generation of infantry fighting vehicles. This contract, worth $45 billion, covers the production of 4,000 infantry fighting vehicles. Rheinmetall is also vying for the $16 billion “Common Tactical Truck (CTT)” program, which aims to supply 40,000 military trucks.
