Rheinmetall’s Strategic Naval Push Reaches Croatia, Transforming European Defence Landscape
BRUSSELS — German defence powerhouse Rheinmetall AG is moving into naval shipbuilding on a global scale, marking a significant strategic expansion that now includes industrial facilities in Croatia, following regulatory approval this month.
In a landmark decision, the European Commission cleared Rheinmetall’s acquisition of Naval Vessels Lürssen (NVL) and the historic Blohm+Voss shipyards from the Lürssen Group, allowing the German firm to fold these units into its defence portfolio. The merger adds military shipbuilding capabilities — including combat vessels and patrol ships — to Rheinmetall’s traditionally land-centric production base.
The approval comes after the Düsseldorf-based company struck an agreement with Lürssen in September 2025 to buy NVL’s marine operations, a business that operates multiple shipyards in northern Germany and maintains facilities abroad, including in Rijeka, Croatia. The European Union’s competition authorities concluded the deal posed limited market risks and offered tollgates for broader industrial consolidation in Europe’s fragmented naval sector.
“As of early 2026, Rheinmetall is positioned not only as a leading supplier of armoured vehicles, artillery, and ammunition but now also as a naval systems provider,” said an industry analyst familiar with the matter. The acquisition marks Rheinmetall’s first direct entry into ship construction, aligning with broader European efforts to pool defence resources and cut reliance on external suppliers.
Croatia’s Role in a Broader Defence Strategy
The inclusion of the Rijeka shipyard in the deal creates a new node in Rheinmetall’s continental network. Analysts suggest that the Croatian location could serve as a production and maintenance hub for surface combatants and other military vessels, helping to strengthen NATO allies’ naval capabilities in the Adriatic and Mediterranean theatres.
Before this transaction, Rheinmetall had been chiefly known for tanks, artillery systems, and air defence technologies. The company’s move into shipbuilding reflects shifting defence priorities across Europe, where rising military budgets and concerns over geopolitical instability have spurred consolidation among major industry players.
Industry Impact and Future Prospects
Naval Vessels Lürssen’s workforce and brand heritage — including the legacy of Blohm+Voss, a shipbuilder dating back to the 19th century — provide Rheinmetall with established expertise in naval architecture and surface combatants. Industry observers note this could accelerate the company’s ability to deliver complete systems rather than individual components, bridging gaps in European naval industrial base capacity.
Although the companies involved have not disclosed financial terms, earlier reporting tied the deal’s value at approximately €1.35 billion. Rheinmetall executives have indicated that the acquisition will help meet rising defence procurement demands from NATO members and allied governments, particularly for patrol vessels, littoral combatants, and ships integrated with modern weapons and sensor systems.
As geopolitical tensions persist in Eastern Europe and beyond, the expansion of Rheinmetall’s footprint from land weapons to naval platforms underscores how defence firms are adapting to broader strategic needs — and how national industrial capacities are being reconfigured in the process.
