German defence major Rheinmetall acquiring US OEM supplier Loc Performance

Dusseldorf, Germany – German military group Rheinmetall is acquiring US-based OEM supplier and military vehicles specialist Loc Performance Products, as part of a move to expand and strengthen its position in North America.

Valued at $950 million (€850 million), the Plymouth, Michigan-based Loc Performance supplies a broad range of products, including suspensions, track systems, rubber products, armour products and fabricated structures for vehicle platforms.

The company is an established supplier to the US government and, in particular, OEM for most military ground vehicle track systems in the US, said Rheinmetall in a 14 Aug statement.

According to its website, Loc Performance’s rubber products include metal/rubber wheels and mounts, rubber coated rolls for conditioning systems as well as bladder bags.

The group also has compounding capabilities, supplying “a wide variety of rubber compounds” used in demanding applications.

In December 2021, Loc Performance acquired Continental's rubber track production facility in St. Marys, Ohio.

As reported by ERJ, the St. Marys facility manufactures rubber track products for agricultural, construction, and defence industries. (ERJ report)

Rheinmetall expects the acquisition to expand its business with the US military, increase its industrial base in the US and create further access for its technologies in North America.

Furthermore, Rheinmetall said it is strengthening its production capacities in the US with an eye on "targeted high-volume major orders for US Army vehicle programmes with a total potential of over $60 billion."