Rheinmetall is expanding its footprint in the US with the strategic acquisition of Michigan-based vehicle manufacturer Loc Performance Products.
First announced in August, the $950-million deal is expected to strengthen Rheinmetall’s core business in land vehicles within one of the world’s largest defense markets.
The acquisition also aims to fuel the German company’s growth in the US, potentially enhancing its global reputation.
“With this acquisition, Rheinmetall is expanding its industrial base in the USA and creating further access for its technologies in North America,” the company stated.
Loc Performance Products will now operate under the name American Rheinmetall Vehicles.
Loc’s Portfolio
Loc Performance is known for producing military track systems for several US military vehicles, including the M1 Abrams tank, M2 Bradley Fighting Vehicle, and the M109 Paladin self-propelled howitzer.
It also manufactures critical armored components, such as armor doors, turret hatches, and underbelly armor, which provides vital blast protection for military vehicles.
Last year, the company announced a collaboration with Milrem Robotics for the US Army’s Robotic Combat Vehicle – Light program.
With the acquisition, Rheinmetall will now take over Loc’s nearly 160,000-square-meter production facility in Plymouth.
“I would like to extend a warm welcome to the approximately one thousand employees at Loc Performance Products to the Rheinmetall Group. We greatly appreciate your expertise and look forward to our joint successes,” said Armin Papperger, Rheinmetall’s chairman of the executive board.
