Grand Alliance: New European Base to Produce Missiles and Air Defense Systems

The two companies said their short-term goal is to establish a joint venture in which Rheinmetall will hold a majority stake, creating a new European base for the production of missiles and air defense systems.

This marks one of the most significant new alliances in the global defense industry and comes at a time when European countries are rapidly increasing defense spending following the war in Ukraine and growing security challenges worldwide, according to BiznisInfo.ba.

Korean Technology, German Production

Under the agreement, the partners will localize the production and further development of South Korea's medium- and long-range missile systems in Europe. The plan is to integrate these systems with Rheinmetall's short-range solutions, offering customers a comprehensive, multi-layered air defense system.

The two companies also agreed to jointly develop new missiles and enhance short-range system capabilities to address existing gaps in European defense capacities.

This will create a portfolio covering nearly all levels of air defense, from portable systems to long-range missile platforms.

Europe Wants Its Own Production Capacity

The companies emphasize that the war in Ukraine and conflicts in the Middle East have demonstrated the importance of independent and reliable production and logistics networks. As a result, European countries are seeking to reduce their dependence on imported military equipment from distant regions and expand domestic production capabilities.

Rheinmetall has been at the forefront of this process in recent years. The German company has emerged as one of the biggest beneficiaries of Europe's defense boom and is now further expanding its presence in the air defense sector, one of the most in-demand segments of the defense industry.

A New Center for Missile Systems

Oliver Dörr, CEO of Rheinmetall's Air Defense division, said the two companies have complementary product portfolios capable of meeting both current and future market needs.

Ik-Hyun Shin, President and CEO of LIG D&A, said the partnership represents an opportunity to establish a strong European defense capability in the missile systems and air defense sector.

LIG D&A, formerly known as LIG Nex1, is one of South Korea's leading defense manufacturers and develops some of the most advanced missile systems in Asia, including the L-SAM and M-SAM II systems.

The company recently opened its European representative office in Munich, a move seen as part of a broader strategy to expand its presence in the European market.

A New Trend in the Defense Industry

The agreement between Rheinmetall and LIG D&A is another indication of the accelerating formation of international partnerships in the defense industry. Rather than relying solely on traditional arms purchases, companies are increasingly establishing joint ventures, sharing technologies, and building production capacities within Europe.

The goal is to ensure a stable supply of missiles, ammunition, and air defense systems at a time when European countries are investing record amounts in strengthening their armed forces.