A conceptual design of Rheinmetall’s Lynx XM30 for the US Army competition. (Rheinmetall artwork)
WASHINGTON — Rheinmetall has officially acquired Michigan-based Loc Performance for just under $1 billion, a move company leaders say is central to plans for US footprint expansion.
“The purpose of the acquisition is to strengthen Rheinmetall’s position in the US market, and we do that in many ways,” Matthew Warnick, American Rheinmetall Vehicles managing director, told Breaking Defense ahead of the closing.
“First and foremost, we pick up almost two million square feet of manufacturing space, but more importantly than that, is the… approximately 1,000 employees that we get to add to our bench that are used to manufacturing components and parts, all the way up to combat vehicles,” he added.
With the $950 million purchase of Loc now closed, Rheinmetall plans to keep those 1,000 employees on staff and add additional jobs. Loc’s Chief Executive Officer Jason Atkinson noted that prior to the close, Loc already had about $3.6 billion worth of backlog work, including vehicle drivelines, suspensions, track systems, rubber products, armor products and fabricated structures.
At the same time, the German-based Rheinmetall has sought to carve out a larger share of the US market is vying to win Army competitions like the coveted Bradley replacement program dubbed the XM30, the Common Tactical Truck, the Small Multipurpose Equipment Transport (S-MET) Increment II and a revamped self-propelled howitzer initiative.
For 2025, Warnick projects the new pairing will bring in close to $850 million in revenue and, depending on where things stand with new wins, that figure could hit “north of” $1 billion by 2027.
“[That target] is a mix of the existing backlog that we now create the opportunity for export coming out of Loc facilities, given the robust international footprint of Rheinmetall… and being able to provide material content into those programs, be it in the United Kingdom, be it in Australia, be it in Germany, but also winning new contracts as we go forward,” he added.
Depending on just how much growth there is within the US market, Warnick said, will determine if the company can move ahead with plans to enlarge its production footprint and, potentially, build out a military vehicle center of excellence inside the United States.
