By Cristina Gallardo
Rheinmetall and aerospace company Destinus teamed up to produce missiles for Europe and some member states of the North Atlantic Treaty Organization.
The two companies will form a joint venture, which should be established during the second half of this year, focused on advanced cruise missiles and ballistic rocket artillery, Rheinmetall said.
The German company will hold a 51% stake in Rheinmetall Destinus Strike Systems, as the venture will be named, while Destinus will hold the remaining 49%, it said.
The move comes as European governments urge manufacturers to boost their production capacity to meet growing demand for military equipment, fueled by the war in Ukraine, which depleted stocks across the continent.
"Europe is entering a new phase of scaling missile production," said Mikhail Kokorich, co-founder and chief executive of Destinus. "Missile systems are evolving from limited-production assets into industrial products. The real constraint in Europe today is not demand, but industrial capacity."
Rheinmetall said the conflicts in Ukraine and the Middle East have increased demand for scalable strike systems to thousands per year, and could still grow to tens of thousands over time. This could create a market opportunity of hundreds of millions of euros annually in the near term, with the potential to reach the low billions over time, the German group added.
"We must expand the industrial base for modern defense systems in Europe. This joint venture reflects this necessity," Rheinmetall's Chief Executive Armin Papperger said.
Write to Cristina Gallardo at cristina.gallardo@wsj.com
(END) Dow Jones Newswires
April 13, 2026 03:50 ET (07:50 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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