The German defence group Rheinmetall has announced the acquisition of the US company Loc Performance for USD 950 million. Based in Michigan, Loc Performance is known for the production of tracked systems for US Army ground vehicles.

The acquisition is a strategic move by Rheinmetall to strengthen its industrial footprint in the United States and increase its competitiveness in winning major U.S. Army contracts such as the XM30 and Common Tactical Truck programs, which together are worth more than $60 billion. Rheinmetall considers the U.S. market a key strategic priority. The company, known for its Leopard tanks, has seen its share price increase nearly sixfold since 2022, helped by increased defence spending in response to the conflict in Ukraine.

Founded in 1971 in Plymouth, Michigan, Loc Performance has grown to four manufacturing facilities in Michigan and Ohio. The company, which employs approximately 1,000 people, specializes in powertrain, track systems and armor products.