German defense giant ラインメタル has accelerated loitering munitions production to full capacity at its Italian facilities, securing over $213 million in orders from eight European countries as the Ukraine war drives unprecedented demand for precision strike drones. The company announced that series production is now operating at “full speed” at two plants in Sardinia operated by its subsidiary RWM Italia.
The production surge comes as European nations rapidly expand their loitering munitions capabilities in response to lessons learned from the Ukraine conflict, where these kamikaze drones have proven devastatingly effective against armored vehicles, artillery positions, and air defense systems.
Italian Production Facilities at Full Capacity
Rheinmetall completed its modern production facility for loitering munitions assembly, testing, and warhead integration several months ago in partnership with Israeli manufacturer UVision Air Ltd. The operation spans two sites in Sardinia: the Musei plant handles assembly and testing of electronic and inert components, while the Domusnovas facility manufactures and integrates warheads into the munitions.
The current order backlog totals more than €200 million ($213 million USD) for various HERO loitering munitions models destined for eight different NATO and non-NATO countries across Europe. Rheinmetall has not disclosed specific customer names for security reasons.
HERO Loitering Munitions Systems
The Italian facilities produce three variants of the HERO family of loitering munitions. The HERO 30 is a small, portable system designed for infantry use in close-range engagements. The HERO 120 is a medium-sized platform engineered for precision strikes against armored vehicles and immovable installations. The HERO 400 provides medium to long-range capability for precision strikes against fortified positions and strategic targets.
All HERO systems feature low acoustic and visual signatures, pneumatic launch systems, and operator control throughout the mission with mid-air abort capabilities. The munitions can loiter above target areas, locate and track enemies, and strike with precision timing—or be recalled if the situation changes.
Broader European Defense Expansion
The production expansion fits into Rheinmetall’s larger unmanned systems portfolio, which generated approximately €120 million ($128 million USD) in sales during 2024. The company manufactures its own drones including the LUNA NG reconnaissance platform at facilities in Penzberg, Germany, and collaborates with major defense contractors including Anduril and Lockheed Martin.
Beyond production capabilities, Rheinmetall maintains leadership in counter-drone systems with a portfolio covering detection, identification, and defeat mechanisms including electronic jammers, cannon-based air defense platforms like the Skyranger, and high-energy laser systems.
DroneXL’s Take
This production ramp-up comes with notable irony: just last month, Rheinmetall CEO Armin Papperger warned that military drones could become the defense industry’s “biggest bubble,” questioning whether the UAV market’s explosive growth is sustainable long-term. Yet here’s his company going full throttle on loitering munitions production with over $200 million in secured orders.
The disconnect illustrates the difference between tactical reality and strategic forecasting. Right now, European militaries face urgent capability gaps exposed by the Ukraine war, where loitering munitions have proven indispensable. Countries need these systems today, regardless of whether demand remains at current levels in five years.
Rheinmetall’s dual approach—ramping production to meet immediate demand while maintaining public skepticism about long-term market sustainability—may actually be smart risk management. The company is capitalizing on the current surge while avoiding the trap of assuming today’s extraordinary demand represents the new normal. Whether Papperger’s bubble warning proves prescient or overly cautious will depend largely on how the broader European security situation evolves.
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