Rheinmetall plans to increase revenues of the branch in the USA to $1 billion by 2027

By Alimat Aliyeva

The German defense giant Rheinmetall is planning to significantly expand its presence in the United States, with the goal of surpassing $1 billion in revenue by 2027 for its American subsidiary, American Rheinmetall Vehicles (ARV).

In a major step toward achieving this goal, Rheinmetall has acquired Loc Performance, a Michigan-based manufacturer of components for armored combat vehicles. This strategic move will strengthen Rheinmetall's position in the highly competitive U.S. defense market.

"The purpose of the acquisition is to solidify Rheinmetall’s standing in the U.S. market, and we are taking a multi-faceted approach to achieve this," said Rheinmetall’s representative.

The deal, valued at $950 million, will see ARV gain an additional 1,000 engineers. This expansion aligns with Rheinmetall’s broader strategy to capture a significant market share by bidding for high-profile Pentagon contracts.

Warnick, a spokesperson for ARV, also stated that following the acquisition of Loc Performance, ARV expects to generate around $850 million in revenue. By 2027, the company anticipates that this figure will surpass $1 billion, marking a major milestone in Rheinmetall’s U.S. operations.

In addition to bolstering its manufacturing capabilities, the acquisition will provide ARV with access to cutting-edge technologies and expertise in defense components, reinforcing its competitive edge in the U.S. market.

This expansion comes at a time when the U.S. defense industry is undergoing significant transformations, with increasing demand for advanced military vehicles and equipment. Rheinmetall’s move signals its commitment to capitalizing on these trends and cementing its role as a key player in the global defense sector.