ÜBERLINGEN, Germany / MADRID — March 16, 2026 : German defense company Diehl Defence and Spain-based technology and defense firm Indra Group have signed a strategic agreement to jointly develop and produce advanced ground-based air and missile defence systems.
The agreement was signed on March 12, 2026, at Diehl Defence’s headquarters in Überlingen. The signing ceremony included Ángel Escribano, Executive Chairman of Indra Group; José Vicente de los Mozos, Chief Executive Officer of Indra; Helmut Rauch, Chief Executive Officer of Diehl Defence; and Roland Greiner, Vice President of International Sales for Latin America, Spain and Portugal at Diehl Defence.
The partnership aims to strengthen Europe’s industrial base for air and missile defence while expanding the technological capabilities and production capacity of both companies. The cooperation is also intended to support the development of European-designed defence systems and enhance strategic autonomy in the sector.
Initial Development Phase
Under the agreement, the companies will begin cooperation with the development of a medium-range ground-based air defence (GBAD) system designed to meet the operational requirements of the Spanish Armed Forces.
The system will be developed using Spain’s existing technological and industrial base, allowing domestic production, maintenance, and long-term operational support within the country. The project is intended to strengthen national industrial participation while integrating advanced missile and sensor technologies.
Multi-Layer Air Defence Architecture
The cooperation focuses on the development of multi-layer air defence solutions capable of addressing a range of aerial threats. Each partner contributes specialized technological capabilities to the program.
Diehl Defence brings experience in missile development and integrated ground-based air defence platforms. Its contributions include the IRIS-T missile family, which forms the basis for several air defence variants:
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IRIS-T SLS (Short Range): Designed for short-range air defence against aircraft, helicopters, and drones.
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IRIS-T SLM (Medium Range): Provides medium-range engagement capability and has been deployed as a ground-based air defence solution.
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IRIS-T SLX: An extended-range variant currently under development intended to increase interception range and altitude coverage.
Indra Group contributes system-level capabilities including radar technology, integrated sensors, tactical communications networks, and command-and-control (C2) systems. These components are essential for target detection, battle management, and coordination of missile interception operations.
Planned Expansion of Cooperation
According to the companies, the partnership is structured in phases and may expand beyond the initial ground-based air defence project.
Future cooperation areas include potential maritime and airborne air defence applications as well as joint exploration of emerging and disruptive technologies designed to address evolving aerial threats.
Strategic Context: European Defence Investment
The agreement comes amid increased defence spending across Europe and growing efforts to develop regionally produced defence systems.
Spain has initiated several Special Modernisation Programmes (PEM) for its armed forces, allocating approximately €14 billion for 2025 to modernize military capabilities across multiple domains, including air defence.
At the European level, the partnership aligns with the ReArm Europe / Readiness 2030 framework. The initiative aims to mobilize up to €800 billion for defence capability development through measures such as fiscal flexibility, joint procurement mechanisms, and new financial instruments.
Within this framework, the European Commission has identified air and missile defence as a priority sector and designated it a “European Readiness Flagship,” highlighting the importance of coordinated procurement and industrial cooperation among European states.
Industrial and Operational Implications
Both companies stated that the partnership combines complementary technological strengths. Diehl Defence’s expertise in guided missiles and ground-based air defence platforms is integrated with Indra’s capabilities in radar systems, sensor integration, and command-and-control architecture.
Company representatives said the collaboration is intended to provide integrated air defence solutions for allied armed forces while meeting increasing demand for European-developed systems.
According to statements during the signing ceremony, Indra Executive Chairman Ángel Escribano noted that European industrial partnerships are necessary to deliver advanced defence systems within required timelines and production volumes. Diehl Defence CEO Helmut Rauch stated that the cooperation would expand the range of air defence systems available to European customers and contribute to strengthening Europe’s defence technology base.
The joint initiative positions both companies to participate in upcoming European air defence programs while supporting the development of sovereign air and missile defence capabilities across the continent.
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