Lockheed Martin Corporation (NYSE:LMT) has reportedly expressed its intention to have its missiles, including ATACMS and Hellfire types, manufactured by its German counterpart Rheinmetall.
Lockheed Martin, Rheinmetall Discuss Missile Production In Germany
Lockheed Martin’s Europe head, Dennis Goege, shared with WirtschaftsWoche, a German business magazine, that the company is in discussions with Rheinmetall to expand its manufacturing to include ATACMS and Hellfire missiles, reported Reuters. This production is expected to take place at Rheinmetall’s Unterluess site in northern Germany.
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In April, Lockheed Martin and Rheinmetall announced an expanded partnership under which the U.S. firm would supply missile and rocket technology, while Rheinmetall would oversee missile production and sales in Europe.
Goege stated that the final list of missiles to be manufactured in Germany is still undecided. Rheinmetall also recently began producing fuselage parts for Lockheed's F-35 fighter jets.
LMT did not immediately respond to Benzinga’s request for comment.
Missile Output Growth As US Eyes Defense Stakes
This move by Lockheed Martin to expand its missile production in Germany comes at a time when the U.S. government is considering buying ownership stakes in major defense contractors, including Lockheed Martin and Palantir (NASDAQ:PLTR).
Earlier in the year, the company faced challenges with its classified Aeronautics program and two Rotary and Mission Systems projects, leading to $1.8 billion in charges in the second quarter, which led to a trimmed outlook by Bank of America Securities.
Meanwhile, Lockheed has also been exploring new avenues for growth, such as tapping into its untouched Pacific mining licenses to exploit critical minerals.
According to Benzinga Edge Stock Rankings, Lockheed Martin has a growth score of 42.41% and a momentum rating of 25.06%. Click here to see how it compares to other leading defense companies.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.