LONDON (ShareCast) - (Sharecast News) - Lockheed Martin and Rheinmetall are to co-produce short-range ballistic missiles in Europe, the two defence firms announced on Tuesday.
Backed by their respective governments, the American and German businesses have agreed to manufacture and distribute Lockheed Martin's ATACMS short-range ballistic missiles at Rheinmetall's Unterluess site in Germany.

It will be the first time the guided missiles will be manufactured outside the US.

Announcing a memorandum of understanding at the Nato summit in Ankara in Turkey, Lockheed Martin president Jay Pitman said the partnership marked a "watershed moment for European security and allied industrial cooperation". The US firm's Europe chief executive, Dennis Goege, added: "Bringing ATACMS co-production to Germany is a strong signal for Europe's defence industry and for Nato's long-term resilience."

Armin Papperger, Rheinmetall chief executive, said: "By establishing ATACMS production at [our] Unterluess site, we are creating new capabilities for Germany and Europe, securing supplies for our customers and strengthening our autonomy in defence policy."

Around 4,000 employees currently work at the 125-year old site. ATACMS are currently produced at Camden, Arkansas, where production will continue until the transition is complete, Lockheed Martin confirmed.

As at 1300 BST, shares in Lockheed Martin had put on 1% in pre-market trading, while Dusseldorf-based Rheinmetall was also trading up 1%.

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