German arms manufacturer Diehl Defence is investing about €1 billion to expand production capacity for air defense systems and their missiles, responding to surging global demand, the company announced, according to Defence Industry Europe.
The company highlighted the IRIS-T Surface-Launched Medium-Range (SLM) system, whose production has grown following the completion of a new integration and testing center. These systems are being supplied to Ukraine as well as several European countries, most recently Denmark, Switzerland, and Slovenia.
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Alongside the systems themselves, Diehl is scaling up missile production. The company is adding "numerous new facilities," some already completed and in operation, to ensure a sufficient stockpile of interceptors.
This comes at a critical time, as Ukraine faces persistent shortages of air defense ammunition, while the number of systems in service continues to rise, driving demand for missiles even higher.
Diehl is also finalizing construction of the new Diehl Energy Products GmbH complex, responsible for producing batteries and related technologies for guided missiles, munitions, and dual-use applications. The site adds 7,000 square meters of production and logistics space plus 3,600 square meters of offices. According to the company, this has expanded existing infrastructure fourfold.
With all these activities in motion, Diehl's workforce has now grown beyond 5,000 employees, reflecting the parallel need for skilled personnel to match the physical expansion.
All in all, the German manufacturer visibly wants its industrial capacity to catch up with the flood of orders for the IRIS-T SLM, which is fast becoming Europe's most widely adopted fully indigenous air defense system.
For Ukraine, the buildup promises stronger defenses against russian cruise missiles and strike drones. Especially in the face of reduced support from the United States.
Meanwhile, scaling is evident across the entire supply chain. As Defense Express reported earlier, the German company Hensoldt recently boosted annual production of the TRML-4D radar — a key component of IRIS-T SLM — to 30 units per year.
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