Rheinmetall CEO expects ATACMS revenues from 2028, Boxer deal by year-end

Rheinmetall, which on Thursday cut its sales outlook after Germany cancelled its F126 frigate programme, also expects a multi-billion-euro contract to supply Boxer armoured vehicles to the German military to be signed by year-end, Papperger said.

"There is absolutely nothing standing in the way," Papperger said in comments published on Friday.

Rheinmetall's share of the contract would be worth €12.4 billion ($14.3 billion), while the total value including partner KNDS is expected to reach about €25 billion.

A service contract to be negotiated separately would add around €4 billion for the two partners, while options for additional orders could be worth a further €25 billion, he said.

($1 = 0.8681 euros)

DUESSELDORF, Germany, Aug. 7 (Reuters) - Rheinmetall expects to generate initial revenue from joint production of ATACMS missiles with Lockheed Martin in Germany in 2028, CEO Armin Papperger told Reuters, with demand likely to remain strong for at least 15 years.

The German defence company signed a memorandum of understanding with Lockheed last month to jointly produce the short-range ballistic missiles at Rheinmetall's Unterluess plant in northern Germany, where production facilities are due to be set up next year.

"Naturally, there will also be sufficient capacity to replenish the U.S. military arsenals depleted by the conflict involving Iran. That won't happen in two years. It will take much longer," Papperger said.

The joint venture still requires approval, but Papperger said the process was well advanced and had the backing of the U.S. government.