A U.S. defense contractor will establish a missile production facility in Germany, marking a shift toward European-sourced weaponry amid shifting transatlantic security dynamics.
Covenant, a U.S.-based defense company, intends to begin manufacturing intermediate-range missiles near Leipzig starting in 2027. The facility is expected to have an annual production capacity of up to 1,000 units, according to sources cited by Reuters. Most components for the missiles will be sourced from Germany and other European suppliers, the report stated.
The move follows Berlin’s search for cost-effective cruise missile options to address a capability gap in its defense arsenal. Germany has prioritized domestically and European-produced systems to complement existing long-range weapon platforms and reduce reliance on more expensive imports. The urgency for alternatives intensified after the United States, despite prior commitments, canceled plans to supply Germany with Tomahawk cruise missiles, according to the sources.
Neither Covenant nor Germany’s defense ministry responded to requests for comment on the reported production plans.
The planned missiles are expected to have a range exceeding 1,500 kilometers, aligning with intermediate-range missile classifications under relevant defense frameworks.
