This acquisition, part of Rheinmetall’s strategy to bolster its presence in the United States, sees Loc Performance Products rebranded as American Rheinmetall Vehicles. With the U.S. as the world’s largest defence market, Rheinmetall aims to strengthen its capabilities in military land vehicles while expanding its footprint in North America.
Armin Papperger, Chairman of the Executive Board of Rheinmetall AG, stated: “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. 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.”
Loc Performance Products, a full-service provider for military and commercial customers, specialises in advanced driveline, suspension, and track systems, along with a wide range of fabricated structures. Its modernised manufacturing facilities span 160,000 square metres, offering significant capacity for the production demands of major U.S. Army programs such as the XM30 Infantry Fighting Vehicle and the Common Tactical Truck (CTT).
The acquisition positions Rheinmetall to compete for lucrative U.S. Army contracts, including the $45 billion XM30 program for approximately 4,000 infantry fighting vehicles and the $16 billion CTT initiative for 40,000 trucks. “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,” Papperger added.
Rheinmetall will integrate Loc’s capabilities into its global supply chain while ensuring 100% local value creation for its U.S. customers. Loc Performance’s workforce, renowned for technical expertise in military vehicle maintenance and enhancement, is expected to play a crucial role in meeting the production and operational demands of the XM30 and CTT programs.
This strategic move complements Rheinmetall’s broader U.S. operations, which include entities such as American Rheinmetall Munitions, American Rheinmetall Systems, and American Rheinmetall Defense. With these developments, Rheinmetall is reinforcing its position as a key player in the U.S. defence market, delivering advanced solutions for modern military challenges.
