Diehl Defense Boss Sees More M&A To Underpin Production Growth

dielh defense iris-t sl systems
Credit: Diehl Defense

LE BOURGET—Diehl may undertake more acquisitions to support its sharp rise in output in air and missile defenses, says Helmut Rauch, the boss of the privately held company’s defense business.

Diehl, at the start of last year, took over precision parts manufacturer Allweier, and this month folded in training and simulation specialist e.sigma Systems. Other such efforts are in the works, in part to strengthen the company’s supply chain, he told Aviation Week here at the Paris Air Show.

The war in Ukraine has driven huge demand for Diehl Defense. Kyiv uses the company’s ground-launched IRIS-T missile-based surface-to-air missiles systems, and countries in Europe also have lined up to buy the equipment.

Over the past three years, Diehl has increased missile production 10-fold and is expanding in all production sites, Rauch noted. The company has just doubled the production floorspace where it integrates the firing units for the medium-range IRIS-T SLM system. In some places, the company has gone to operating at two or three shifts to keep up.

It also can draw on capacities with sister units Diehl Metall and Diehl Controls that are going up to support growth in the defense activities.

Diehl, as it boosts output rapidly, continues to pursue several development programs.

Rauch signaled interest for Europe to combine forces on its hypersonic interceptor program. Diehl is a partner on the European Union (EU) Hydef program that won a competition in 2023. The EU later awarded a second contract to MBDA for a project called HYDIS². Rauch said he sees merit in combining the efforts and is open to the idea, but said it would have to be a partnership on equal terms.

The company is also working on an IRIS-T SLX, a longer-range version capable of striking targets at 80-km (50-mi.)-range. It should be ready around 2028-29.

A naval version of the medium-range IRIS-T SLM is due for ship-based testing in the fall, Rauch said.

Robert Wall

Robert Wall is Executive Editor for Defense and Space. Based in London, he directs a team of military and space journalists across the U.S., Europe and Asia-Pacific.

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