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    Home > Finance > Exclusive-Diehl to boost production of IRIS-T air defence used in Ukraine, CEO says
    Finance
    Exclusive-Diehl to boost production of IRIS-T air defence used in Ukraine, CEO says

    Published by Global Banking and Finance Review

    Posted on January 22, 2026

    3 min read

    Last updated: January 22, 2026

    Exclusive-Diehl to boost production of IRIS-T air defence used in Ukraine, CEO says - Finance news and analysis from Global Banking & Finance Review
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    Quick Summary

    Diehl Defence will boost IRIS-T air defence production to 16 units annually, supporting Ukraine and European nations under the Sky Shield Initiative.

    Table of Contents

    • Diehl Defence's Production Plans for IRIS-T Systems
    • Current Production and Future Plans
    • International Orders and Collaborations
    • Development of New Missile Technology

    Diehl Defence Plans to Increase Production of IRIS-T Air Defence Systems

    Diehl Defence's Production Plans for IRIS-T Systems

    By Sabine Siebold

    Current Production and Future Plans

    BERLIN, Jan 22 (Reuters) - German missile maker Diehl Defence plans to expand production of firing units for its IRIS‑T SLM and IRIS‑T SLS air-defence systems, lifting capacity to as many as 16 units a year within two years, CEO Helmut Rauch said on Thursday.

    International Orders and Collaborations

    The IRIS‑T SLM and SLS are among the most advanced ground‑based air-defence systems in Europe, and have been used by Ukraine to protect critical infrastructure from Russian attacks.

    Development of New Missile Technology

    "Regarding the firing units, we are completely in line with our plans and can build up to 10 units this year," Rauch told Reuters in a rare interview on the sidelines of a Handelsblatt conference in Berlin.

    "In the medium term, we are planning to expand production to up to 16 firing units - in about two years. If we see more demand from our customers, we can ramp up production even further."

    The planned production increase has not previously been reported.

    With a range of around 40 kilometres (24.6 miles) and full 360-degree coverage, the IRIS‑T SLM has become one of the most prized systems Berlin has delivered to Kyiv.

    Ukraine has used the system to shoot down cruise missiles targeting power infrastructure and aircraft including Iranian-made Shahed drones.

    German officials have repeatedly described it as one of the top-performing Western systems in Ukraine's arsenal.

    Rauch noted a tenfold increase in the output of IRIS-T SLM missiles since 2021, prior to Russia's full-scale invasion of Ukraine.

    "If we get more orders, we can also ramp up production here (of the missiles)," he said, declining to specify annual production figures.

    EUROPE SEEKS TO REBUILD AIR DEFENCES

    Western countries have raced to bolster air-defence inventories, depleted over decades of post-Cold War neglect, following the onset of the war in Ukraine.

    In response, Germany launched the European Sky Shield Initiative (ESSI) in 2022, which now groups more than 20 nations, aimed at boosting ground-based air defence in Europe.

    Rauch said eight ESSI members - Estonia, Latvia, Bulgaria, Switzerland, Denmark, Slovenia, Sweden and Germany - have purchased the IRIS-T SLM. Outside ESSI, Egypt and Ukraine have placed orders.

    Germany has ordered a total of six IRIS-T firing units, receiving its first in 2024 and expecting four additional units this year, according to Rauch. Estonia and Latvia are expected to receive their initial units this year.

    Diehl Defence is also developing a longer-range missile.

    "We are working on the development of the IRIS-T SLX, which will have a range of 80 kilometres," Rauch said, adding that Germany had registered interest in the missile while Egypt had already ordered it.

    The IRIS-T SLX is expected to enter series production in 2029.

    (Reporting by Sabine Siebold, Editing by Louise Heavens)

    Key Takeaways

    • •Diehl Defence plans to increase IRIS-T production to 16 units annually.
    • •IRIS-T systems are crucial for Ukraine's defence against Russian attacks.
    • •Germany's European Sky Shield Initiative involves over 20 nations.
    • •IRIS-T SLX missile with 80 km range is under development.
    • •ESSI members and other countries have placed orders for IRIS-T.

    Frequently Asked Questions about Exclusive-Diehl to boost production of IRIS-T air defence used in Ukraine, CEO says

    1What is an air defence system?

    An air defence system is a network of technologies and procedures designed to detect, track, and intercept aerial threats, such as missiles and aircraft, to protect critical infrastructure and populations.

    2What is missile technology?

    Missile technology refers to the design, development, and deployment of missiles, which are self-propelled weapons designed to deliver explosive payloads to a target.

    3What is the European Sky Shield Initiative?

    The European Sky Shield Initiative is a collaborative effort among European nations to enhance air defence capabilities and improve the protection of member states against aerial threats.

    4What is the significance of the IRIS-T system?

    The IRIS-T system is recognized as one of the most advanced ground-based air defence systems in Europe, providing effective protection against various aerial threats.

    5What is the role of international orders in defence production?

    International orders play a crucial role in defence production by driving demand for military technology and systems, facilitating collaboration among nations, and enhancing global security partnerships.

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