The German defense giant plans to launch additional production lines in response to sharply rising demand for Skyranger air-defense systems and other counter-UAV platforms, as well as a potentially major future order from the Bundeswehr.
According to Defence Network, the first new site will be opened in Neuss, Germany, at the location of a former civilian subsidiary of the company. Additional facilities are expected to follow in Italy and Hungary.
Read more: How Much Rheinmetall's Skynex and Skyranger Air-Defense Systems Cost and What Ukraine Is Getting
At present, all Skyranger systems are produced exclusively at a single Oerlikon plant in Switzerland. However, should the Bundeswehr expand its order from 19 units to several hundred, the bulk of production is expected to shift to the new Neuss facility.
Defense Express notes that this information is somewhat surprising, given that Rheinmetall's Italian division, previously responsible for the Skyranger air-defense system, is already involved in delivering Skyranger 35 units to Ukraine. This division is handling both production and integration.
One explanation may be that the Swiss facility continues to manufacture certain unique components, such as the Oerlikon Revolver Gun Mk3. Yet Switzerland's restrictive export policy raises questions. It is also possible that Swiss-made turrets are intended primarily for the German Skyranger 30 variant, while the 35 mm configuration is being produced mainly in Italy.
From a broader perspective, the development is positive: expanded production capacity will increase the output of short-range air-defense systems, which are in high demand for counter-drone operations. It may also help reduce unit costs — currently estimated at around €60 million per battery of four vehicles.
The geographic distribution of the new facilities is logical. A major German order requires greater involvement of domestic industry, while Rheinmetall already operates in Italy and Hungary and has active defense contracts in both countries.
Notably, Ukraine is not mentioned, despite earlier reports suggesting the possibility of establishing production sites there. For now, such plans may be postponed — unsurprising given the priority placed on ammunition and Lynx IFV production lines.
Read more: Rheinmetall Explains How It Will Meet Demand for Thousands of Boxer and Lynx Vehicles While Capacity Isn't Enough
