US company plans to produce medium-range missiles in Germany

American defense company Covenant is reportedly planning to begin producing medium-range missiles near Leipzig, Germany, starting in 2027. Sources told Reuters about the plan, according to Ukrainska Pravda citing "European Pravda."

According to the sources, the missiles' range would exceed 1,500 kilometers, and production capacity could reach up to 1,000 units per year. Although Covenant is a US company, most components for the planned production are expected to be supplied by Germany and other European countries. Both Covenant and Germany's Defense Ministry declined to comment.

Seeking affordable alternatives

The project comes as Berlin searches for less costly weapons options sourced domestically and from other European countries, intended to complement more expensive long-range weapons systems and close what officials consider a gap in combat capability.

The search for alternatives has become especially urgent after the United States, contrary to earlier statements, no longer plans to supply Germany with Tomahawk cruise missiles, sources said.

According to media reports, the German government estimates that building a new long-range weapons arsenal intended to deter Russia will require nearly 12 billion euros. It was also recently reported that the United Kingdom and Germany plan to jointly develop a high-precision long-range missile capable of hitting targets more than 2,000 kilometers away by 2034.