Jürgen Reimer, Chief Financial Officer of the Diehl Group, informed journalists that the group’s sales grew by 11% in 2023, reaching nearly EUR 3.9 billion. The group’s defence division, Diehl Defence, saw the most significant increase, with sales surging by 41% to over EUR 1.1 billion. Company President Helmut Rauch revealed that production of the IRIS-T missile family tripled in 2023 and is expected to double again this year. The company also significantly boosted its workforce, adding over 500 new employees last year. This year, Diehl Defence plans to hire an additional 500-600 employees and increase sales to EUR 2 billion.
Diehl Defence is primarily known for its IRIS-T missile systems and ground-based air defence systems, IRIS-T SLS (short-range) and IRIS-T SLM (medium-range). The latter has proven highly effective in combat conditions in Ukraine. According to the German Federal Chancellor’s Office, Berlin has supplied the Ukrainian Armed Forces with four complete IRIS-T SLM units and an undisclosed number of additional missiles. The German government has also announced plans to deliver eight more units to Ukraine.
The war in Ukraine has prompted the German government to make the long-delayed decision to acquire the IRIS-T SLM system for its own armed forces. A EUR 950 million contract for six units was signed in June 2023. The IRIS-T SLM system can counter various aerial threats, including helicopters, aircraft, cruise missiles, and unmanned aerial vehicles, at a range of up to 40 km and an altitude of approximately 12 km. Ukrainian Armed Forces reports indicate the system’s effectiveness exceeds 90% in combat situations over Ukraine.
The ongoing conflict in Ukraine is one of the key factors driving the company’s growth. Another significant factor is the European Sky Shield Initiative (ESSI), a programme to develop a multi-layered air and missile defence system across Europe, announced in the summer of 2022. Germany leads this initiative, with 21 European countries joining ESSI so far.
Within ESSI, the IRIS-T SLM system by Diehl Defence has been identified as the preferred medium-range solution. In 2023, Estonia and Latvia signed contracts to purchase the system, with a combined value of approximately €1 billion. In January of this year, Slovenia also contracted the IRIS-T SLM system. Diehl Defence expects to receive more orders soon, with Austria and Switzerland likely to be the next buyers. Austria has already officially announced its intention, and Switzerland, despite its neutral status, has decided to join ESSI.
