Rheinmetall Expands Into Naval Shipbuilding With Acquisition Of NVL To Consolidate European Defence Industry.

On September 15, 2025, Rheinmetall announced its intention to acquire Naval Vessels Lürssen (NVL), marking a turning point in the company’s strategy to broaden its reach across all defence domains. As reported by Rheinmetall, the Düsseldorf-based group is preparing to integrate naval shipbuilding into its portfolio, a move that could reshape the German and European defence landscape. The transaction, subject to regulatory approval, is expected to close by early 2026 and reflects growing demand for naval capabilities amid global instability.
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Rheinmetall’s move into shipbuilding demonstrates both a response to the surge in procurement budgets and a proactive strategy to redefine the German defence industry’s role in Europe (Picture source: Generated with AI)

Founded as a military division of the Bremen-based Lürssen Group, NVL brings more than 150 years of experience in naval shipbuilding, with a track record of delivering around 1,000 ships to over fifty navies and coast guards worldwide. Its shipyards in Hamburg, Wilhelmshaven, Wolgast and Peene have established it as a trusted partner in building, maintaining and modernising fleets. NVL is also recognised as a pioneer in autonomous maritime surface systems, signalling strong potential for technological synergies with Rheinmetall. This acquisition builds upon Rheinmetall’s decades of experience in land and air defence, where the company has long been a supplier of vehicles, weapons, electronics, simulation solutions and naval protection systems.

By acquiring NVL, Rheinmetall aims to establish itself as a naval powerhouse comparable to historical consolidations in the defence sector, where integration of shipbuilding and system solutions created globally competitive entities. Similar to the way European aerospace industries merged to form Airbus, Rheinmetall’s integration of NVL is designed to create scale, ensure technological sovereignty and streamline production for naval customers. The strategic implications go beyond industrial consolidation: in a context where NATO allies are reinforcing their maritime presence, Germany could soon rely on a vertically integrated defence group capable of delivering complete system solutions, from naval missiles and guns to sensors, electronics and combat management systems.

CEO Armin Papperger underlined that Rheinmetall seeks to become a cross-domain system house, active on land, at sea, in the air and in space. This ambition aligns with current geopolitical realities, where naval power is once again at the forefront due to increasing tensions in the Baltic and North Seas, the Mediterranean, and wider global shipping lanes. For Germany, strengthening naval production capacity not only contributes to NATO’s collective deterrence posture but also ensures the resilience of Europe’s defence industrial base at a time when autonomy and security of supply have become political imperatives.

The acquisition also reflects Rheinmetall’s broader strategy of sustained expansion and investment. In recent years, the company has multiplied acquisitions and industrial partnerships to secure technological leadership in multiple defence sectors. By integrating NVL’s shipyards and expertise, Rheinmetall extends its industrial footprint in northern Germany, where it already operates vehicle production facilities in Kiel and Flensburg. This geographic concentration will allow synergies in materials, technologies and infrastructure, while reducing the need for major new investments. NVL’s workforce of around 2,100 employees and annual revenues of approximately €1 billion provide a solid foundation for Rheinmetall’s naval ambitions.

Rheinmetall’s move into shipbuilding demonstrates both a response to the surge in procurement budgets and a proactive strategy to redefine the German defence industry’s role in Europe. With NVL, the group is positioning itself not just as a manufacturer of platforms but as a provider of integrated solutions, capable of delivering state-of-the-art vessels tailored to future conflicts. By combining land systems, air defence technologies and now naval platforms, Rheinmetall is cementing its role as one of the few European defence companies able to operate across domains, offering governments and armed forces a strategic partner for long-term capability development.

Written by Teoman S. Nicanci – Defense Analyst, Army Recognition Group

Teoman S. Nicanci holds degrees in Political Science, Comparative and International Politics, and International Relations and Diplomacy from leading Belgian universities, with research focused on Russian strategic behavior, defense technology, and modern warfare. He is a defense analyst at Army Recognition, specializing in the global defense industry, military armament, and emerging defense technologies.