FRANKFURT (Reuters) -Rheinmetall has agreed with Finland’s ICEYE to form a joint venture to make military satellites, part of a drive to repurpose automotive factories to serve the booming defence sector instead.
In a statement on Thursday, the defence contractor said it signed a memorandum of understanding to establish a venture called Rheinmetall ICEYE Space Solutions in which Rheinmetall will hold a 60% stake and satellite operator ICEYE the remainder.
Definitive agreements and official approvals are still pending, it added.
The partners plan to build synthetic aperture radar satellites, which can generate images at night and through clouds, at sites including a Rheinmetall factory for car components in the western city of Neuss.
Rheinmetall has been a pioneer in a drive to convert some production capacity of Germany’s struggling car industry for use by the expanding defence industry as European governments invest to respond to what they see as an increasingly aggressive Russia.
Rheinmetall, Europe’s top ammunition maker, earlier on Thursday reaffirmed that it could exceed its 2025 guidance, citing higher demand from Germany, Ukraine and other European nations.
(Reporting by Ludwig Burger and Matthias Inverardi, editing by Thomas Seythal)
