Rheinmetall acquires Loc Performance Products: Plymouth, Michigan – Rheinmetall AG, a leading global technology group, has successfully completed its acquisition of Loc Performance Products, LLC, a renowned U.S.-based vehicle specialist. This strategic move solidifies Rheinmetall’s position in the North American market, particularly in the competitive landscape for high-volume military vehicle contracts within the United States.
The acquisition, finalized on November 29, 2024, after regulatory approvals, will see the company operating under the name American Rheinmetall Vehicles. The deal, valued at USD 950 million, aligns with Rheinmetall’s growth strategy in the United States, which is poised to become a significant domestic market for the group.
The acquisition strengthens Rheinmetall’s production capacities in the USA in particular, with a view to targeted high-volume major orders for U.S. Army vehicle programs with a total potential of over USD 60 billion. Rheinmetall is one of two remaining participants in the current prototype phase of the XM30 program.
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According to German defence company, this serves to introduce a new generation of infantry fighting vehicles. The volume is estimated at around USD 45 billion for around 4,000 infantry fighting vehicles. At the same time, Rheinmetall is applying for the Common Tactical Truck (CTT) program, which has a volume of around USD 16 billion for around 40,000 trucks.
Armin Papperger, Chairman of the Executive Board of Rheinmetall AG said: “We are making this investment because we have a clear strategy for growth and the United States will be an important core market for us in the coming years.”
“The acquisition of Loc Performance Products proves that we are consistently focusing on success in the USA and want to expand our share of the large market volume. We have a promising position in two major military projects, both in the XM30 infantry fighting vehicle program and in the CTT project,” Armin Papperger said in a statement sent to Defence Star.
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He said everything speaks in favor of this acquisition: Loc Performance Products is already pursuing a sustainable business model with robust organic growth, has a highly qualified workforce and offers us ample capacity reserves for the targeted orders in the USA.
“We can thus realize 100% local value creation in the USA,” Papperger noted.
Military truck.
Loc Performance Products
Founded in 1971, Loc Performance Products has established itself as a diversified full-service provider catering to both military and commercial clients. The company’s expertise spans driveline, suspension, track systems, rubber products, armor solutions, and fabricated structures for various vehicle platforms.
With a strong reputation as a supplier to the U.S. Government, Loc Performance Products is a key OEM for most military ground vehicle track systems in the nation. Additionally, its products are utilized by prominent manufacturers in sectors such as agriculture, construction, mining, and transportation.
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American Rheinmetall Vehicles
American Rheinmetall Vehicles, a subsidiary of Rheinmetall AG, is dedicated to providing cutting-edge tracked and wheeled combat vehicles, as well as tactical wheeled vehicle platforms, to U.S. customers.
The company is actively engaged in supporting the U.S. Army’s modernization efforts through its involvement in high-priority programs like the XM30 combat vehicle and the Common Tactical Truck (CTT).
The Common Tactical Truck (CTT) Program
The CTT program, a major initiative of the U.S. Army, aims to replace its aging fleet of tactical trucks with a modern, versatile, and highly capable system. The program, valued at around USD 16 billion, is expected to procure approximately 40,000 trucks. Rheinmetall, through its HX3 CTT, is actively competing for this significant contract, leveraging its extensive experience in tactical vehicle design, manufacturing, and support.
By acquiring Loc Performance Products, Rheinmetall gains access to state-of-the-art manufacturing facilities, a skilled workforce, and a strong supply chain. This strategic move positions the company to capitalize on the growing demand for advanced military vehicles in the United States and globally.
