Germany’s largest manufacturer of small arms, Heckler & Koch, is entering the drone defence business, the company’s chief executive said on Wednesday.

Stuttgart (dpa) – Germany’s largest manufacturer of small arms, Heckler & Koch, is entering the drone defence business, the company’s chief executive said on Wednesday.

The firm has already received an order for such a system, Jens Bodo Koch said at company headquarters in Oberndorf, south-west of Stuttgart. He did not provide further details.

“Drones pose an incredible threat to infantry soldiers, for which there are currently only a few solutions,” he said.

Heckler & Koch’s new drone defence system involves grenade launchers or automatic grenade launchers that are mounted on a vehicle turret and equipped with a sensor box that uses artificial intelligence to detect drones in the sky and assess their threat level. The grenade is then programmed to explode near the drone.

“A metal cloud is created in the air, which the drone flies into and is destroyed,” Koch explained. He is not related to the company’s founder, Theodor Koch.

Collaboration on systems development

For its drone defence system, Heckler & Koch is collaborating with the artificial intelligence specialist Autonomous Teaming from Munich.

The German arms manufacturer Rheinmetall is supplying control components for the grenades, while the vehicle turret is provided by a Slovenian company.

“We are the system provider that brings it all together,” Koch said.

The project is still in its development phase, with initial firing tests already conducted, but is expected to be completed and ready for sale by the end of the year.

The new product reflects a shift in strategy for the manufacturer of assault rifles, machine guns, grenade launchers and pistols.

When Koch took over the leadership of the Black Forest-based arms manufacturer in 2018, the company was a traditional weapons producer.

Now, it sees itself as a “system provider” that purchases weapons components from suppliers and sells them as part of a complete system – for example, silencers and rifle optics.

This shift has contributed to a significant increase in the company’s revenue.

Record-breaking order books

Amid the threat from Russia and the changing global situation, orders from NATO militaries have surged.

In 2023, the company recorded an order intake of €285.3 million ($324 million), which rose by 50% to €426.2 million in 2024 – the highest in the company’s history.

Revenue increased by 13.9% to €343.4 million, while post-tax profit rose by 9.6% to €31.5 million.

The company has modernized its production facilities with significant investments.

Thanks to its profitable business, Heckler & Koch has been steadily reducing its once overwhelming debt. Following a repayment of €5 million in February, net debt now stands at €90 million.

Heckler & Koch employs approximately 1,250 people, most of whom work at its headquarters in Oberndorf. The company also operates a small assembly plant in the United States.

The management assesses the company’s economic prospects as strong. “Our company is strategically well-positioned to continue growing in a challenging environment,” said Koch.

Source: dpa.com