Lockheed Martin and Diehl Defence Expand PAC-3 MSE Supply Chain Collaboration

Lockheed Martin and Germany’s Diehl Defence have signed a memorandum of understanding (MoU) to expand cooperation across the global supply chain for the PAC-3 Missile Segment Enhancement (MSE) interceptor. The initiative aims to strengthen production resilience and advance joint research, development, and manufacturing efforts in Europe and beyond.

The agreement comes amid rising global demand for air and missile defense systems, as the US and allied nations accelerate production to meet evolving security challenges. The MoU establishes a framework for closer industrial coordination, reflecting a broader push to diversify production and reduce dependency on single-source suppliers.

According to Torsten Cook, Senior Vice President at Diehl Defence, the collaboration underscores Europe’s growing role in supporting the shared defense requirements of partner nations.

PAC-3 MSE: A Pillar of Global Air Defense
The PAC-3 MSE interceptor, part of the Patriot air and missile defense system, features a dual-pulse rocket motor, improved maneuverability, and hit-to-kill accuracy against ballistic, cruise, and hypersonic threats. Currently deployed by 17 nations, it serves as a core component of US and NATO’s layered air defense networks.

Lockheed Martin is expanding production under a $9.8 billion contract to deliver nearly 2,000 interceptors for the US Army. The partnership with Diehl builds on existing collaborations with European companies, including Sener and Oesía-Tecnobit in Spain and Poland’s WZE for key system components.

The PAC-3 MSE is also being integrated into next-generation systems such as the Integrated Air and Missile Defense Battle Command System (IBCS) and the Medium Extended Air Defense System (MEADS) — the latter co-developed by the US, Germany, and Italy to enhance interoperability across allied air defense networks.

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