German defence group Rheinmetall and Netherlands-based defence company Destinus are moving ahead with plans for a joint venture to produce cruise missiles in Germany, with the companies now targeting initial production of two systems and accelerating development of a longer-range weapon.
The venture, Rheinmetall Destinus Strike Systems, was agreed in April and will combine Rheinmetall’s industrial capacity with Destinus’ missile technology. Rheinmetall will hold a 51% stake and Destinus 49%. The venture is expected to be formally established in the second half of 2026 and will be based at Rheinmetall’s facility in Lower Saxony, Germany.
The joint venture is beginning production with Destinus’ Kryla and Ruta Block 2 cruise missiles, while accelerating development of the longer-range Ruta Block 3. The latter is designed for deep strike, with a stated range of more than 2,000 kilometres and a warhead of up to 250kg. The company is hoping to receive NATO qualifications so it can be sold to the lucrative NATO customers and allies market.
Destinus said in April that it was already producing more than 2,000 cruise missile systems a year across its European operations. The companies estimated the near-term market for the venture’s products at hundreds of millions of euros annually, with the potential to reach the low billions as European procurement expands.
