US defence firm Covenant plans missile production in Germany, sources say
XLI•Covenant plans missile production in Germany
BERLIN, Aug 28 (Reuters) - U.S. defence company Covenant plans to begin producing intermediate-range missiles near Leipzig from 2027, sources told Reuters on Friday, as Germany searches for affordable cruise missiles that can be deployed in large numbers.
The missiles would have a range of more than 1,500 kilometres and production capacity could reach up to 1,000 units a year, the sources said.
Components expected to be sourced from Europe
While Covenant is a U.S. company, most components for the planned production are expected to be sourced from Germany and other European countries, they added.
Germany seeks cheaper long-range alternatives
Covenant and Germany's defence ministry declined to comment.
The project comes as Berlin looks for less costly, domestically and European-supplied options to complement more expensive long-range weapons systems and close what officials see as a capability gap.
The search for alternatives had gained urgency after the United States, despite earlier announcements, no longer plans to provide Germany with Tomahawk cruise missiles, the sources said, triggering a search for alternatives.
