Rheinmetall plans to start production of "deep strike" weapons for Germany and other countries as early as this year, as Europe seeks to fill gaps in its capabilities as part of plans to deter Russia, reports the Financial Times, according to UNN.
Details
The German arms company stated that its new joint venture with the Dutch defense startup Destinus, announced last month, will begin production at the end of this year or in early 2027.
Rheinmetall Destinus Strike Systems will produce cruise missiles as well as ballistic rocket artillery, according to a company statement released Thursday as part of its quarterly results, aimed at meeting the needs of Germany and international customers.
Destinus, founded in 2021, reported last month the successful completion of a test flight of its new long-range strike system, the Ruta Block 2.
The missile's stated range is 700 km or more, which is significantly less than weapons such as the land- and sea-based Tomahawk cruise missiles that the US had planned to deploy in Germany this year.
However, US President Donald Trump on Friday canceled the Biden-era plan aimed at providing Europe with the capability to strike targets inside Russia, the publication writes.
This sharp reversal has prompted Berlin and other European capitals to step up efforts to obtain interim solutions and accelerate projects to develop their own long-range precision strike capabilities.
"Destinus is already supplying cruise missiles to Ukraine, and last month the Russian Ministry of Defense included it on a list of possible targets due to its role in supplying weapons to Kyiv," the publication writes.
The new joint venture marks the German company's first step into cruise missile production, allowing it to take a dominant position in a market where the main regional player is the pan-European company MBDA.
Düsseldorf-based Rheinmetall, which traditionally manufactures tanks, artillery, and ammunition, is expanding its operations into various sectors, taking advantage of the growth in European defense spending.
While the company's first-quarter revenue and profit fell short of analyst expectations, it stated that orders would increase in the second quarter of 2026.
The company said it is on track to meet its full-year 2026 forecasts for revenue growth of 40-45%, increasing sales from approximately €10 billion last year to more than €14 billion in 2026.
"Overall, we are moving confidently toward achieving our ambitious annual targets," said CEO Armin Papperger.
The company's order backlog reached a record €73 billion—up from €56 billion a year earlier. This figure includes €5.5 billion from the new naval division following the completion of the acquisition of the Bremen shipyard Naval Vessels Lürssen this year.
Rheinmetall's first-quarter sales fall short of analyst expectations05.05.26, 03:20