US defence firm Covenant plans missile production in Germany, sources say

​U.S. defence company ​Covenant plans to begin ‌producing intermediate-range ​missiles near Leipzig from 2027, sources told Reuters on Friday, as ‌Germany searches for affordable cruise missiles that can be deployed in large numbers.

The missiles would have a range ‌of more than 1,500 kilometres and production capacity could ‌reach up to 1,000 units a year, the sources said. While Covenant is a U.S. company, most components for the planned ⁠production ​are expected ⁠to be sourced from Germany and other European countries, they ⁠added.

Covenant and Germany's defence ministry declined to comment. The project ​comes as Berlin looks for less costly, domestically and ⁠European-supplied options to complement more expensive long-range weapons systems and ⁠close ​what officials see as a capability gap.

The search for alternatives had gained urgency after the United ⁠States, despite earlier announcements, no longer plans to provide Germany ⁠with ⁠Tomahawk cruise missiles, the sources said, triggering a search for alternatives.