Rheinmetall Defence and Lockheed Martin have signed a Memorandum of Understanding (MoU) to work together on developing a rocket artillery system tailored for Germany. The system will be based on existing and combat-proven components produced in Germany.
The partnership between the two companies is an agreement that offers unique opportunities for all parties. Rheinmetall‘s expertise in fabrication and production and Lockheed Martin‘s capabilities and know-how create an intriguingly strong team with the potential to develop innovative solutions for rocket artillery systems.
According to Armin Papperger, chief executive of Rheinmetall AG, “For us, the letter of intent signed today is an agreement of strategic significance. Combining Lockheed Martin’s proven capabilities and extensive know-how with Rheinmetall’s experience in fabrication and production opens unique opportunities for both sides”.
Lockheed Martin Vice President of Tactical Missiles, Paula Hartley, expressed the company’s excitement in collaborating with Rheinmetall. “Lockheed Martin looks forward to collaborating and optimizing our combined resources to meet an immediate need for deterrence. This is another step in our partnership with Rheinmetall bringing 21st Century Security solutions to Germany.”
According to GlobalData’s “Germany Armed Forces – Equipment Inventory 2022“, Germany has three types of artillery. However, two of the procurements of artillery systems date back to the 1980s and 1990s. Germany domestically procured 26 PzH 2000 155mm Self-Propelled Artillery Systems in the late 1990s from a Rheinmetall, KMW collaboration. Germany also procured 118 Tampella 120mm mortar systems.
Lockheed Martin has previously worked with Germany, as they procured 36 of the M270 multiple rocket launch systems in the late 1980s.
Germany clearly needs modern artillery, especially considering Germany’s defence budget has seen an unprecedented rise.
The agreement is also an opportunity for both companies to expand their reach in the global market for rocket artillery systems.
The partnership between Rheinmetall Defence and Lockheed Martin offers opportunities for both companies to expand their reach in the global market for rocket artillery systems, and to explore collaborative opportunities in research and development, production, and other activities.
Rheinmetall sales increased by 13% in the fiscal year of 2022, whilst Lockheed Martin has recently recorded $15.1bn in sales and a segment operating profit of $1.7bn, representing a 16% growth for Q1 2023 from Q1 2022.
