German defense company Rheinmetall is entering the cruise missile market through a new joint venture with aerospace company Destinus, amid growing European concerns over security gaps after the United States canceled plans to deploy long-range missiles in Germany.
According to the Financial Times (FT), the project, called Rheinmetall Destinus Strike Systems, will produce cruise missiles and ballistic rocket artillery beginning in late 2026 or early 2027, the companies said while Rheinmetall published its quarterly results on Thursday.
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The move comes days after US President Donald Trump reversed a Biden-era decision that would have seen American Tomahawk cruise missiles deployed to Germany this year. The deployment had been intended to strengthen Europe’s ability to strike targets deep inside Russia.
According to the report, the policy shift pushed Berlin and other European capitals to accelerate efforts to develop independent long-range precision-strike capabilities and seek temporary alternatives.
Destinus, founded in 2021, said last month it had successfully tested its new deep-strike system, Ruta Block 2. The missile reportedly has a range of 700 kilometers or more, although this is significantly shorter than the US-made Tomahawk missile systems.
The company already supplies cruise missiles to Ukraine and was recently included on a Russian Defense Ministry list of possible targets because of its role in arming Kyiv.
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