Defence contractor Diehl welcomes German procurement acceleration

Helmut Rauch, CEO of the German arms manufacturer Diehl Defence, has welcomed the procurement acceleration law for the German Armed Forces.

The law is part of the German government’s plans to expand the size and capabilities of its armed forces in the face Russia’s war of aggression in Ukraine.

“This will help us enormously in bringing the infrastructure forward,” said Rauch during a visit by German Economy Minister Katherina Reiche to the Diehl plant near Nuremberg on Friday.

Diehl Defence, manufacturer of the internationally sought-after Iris-T air defence system, grew by 60% last year, Rauch said. “This will continue next year,” he said.

As part of the European Skyshield initiative, eight countries have already decided to equip their armies with the Iris-T SLM system designed for medium ranges. Switzerland and Denmark were the latest to commit.

Reiche asserted that the defence industry had not received sufficient attention in Germany for a long time. Nevertheless, it plays an important role in Europe’s defence capabilities.

Diehl has managed to ramp up production within a short period of time, invest in new technologies and produce them in a way that makes them ready for use – for example, in technology for combating drones.

The acceleration law is important, said Reiche, because the Bundeswehr’s needs are growing, and the industry must be helped to meet them. “What we have seen is that we were too slow,” the minister said.