The Diehl Group embraces the implementation of the Acceleration Act - Regulatory body has already confirmed the approach for a directive intended to shield employees from threats tied to radiation exposure.
The German government has approved a new legislation, the Bundeswehr Planning and Procurement Acceleration Act (BwPBBG), aimed at significantly speeding up and simplifying the acquisition of military and civilian goods for the Bundeswehr (German Armed Forces).
The key features of this law include streamlining procedures, early contract initiation, a broader scope, and support for innovation and partnership. It is expected to remove various bureaucratic hurdles and legal delays, enabling authorities to start procurement contracts before full financing is secured if necessary for national defense.
This law covers all Bundeswehr needs, from combat systems like radar infrastructure to civilian supplies such as medical materials and construction projects. It also introduces exceptions to EU procurement rules for urgent contracts, allowing limiting competition to national or European suppliers if needed.
The acceleration act is crucial for enabling the German defense industry to meet the growing demand of the German Armed Forces. The CEO of defense manufacturer Diehl Defence, Helmut Rauch, has welcomed the act and expressed his support during a visit from Katherina Reiche, the Federal Minister of Economics (CDU), to the Diehl plant in Rothenbach near Nuremberg.
Diehl Defence, the manufacturer of the internationally sought-after air defense system Iris-T, experienced a 60% growth last year. The company visited by Katherina Reiche during her visit is Diehl Defence. The visit by Katherina Reiche to the Diehl plant was during a time when Helmut Rauch expressed his support for the acceleration act.
The acceleration act is intended to help advance the infrastructure of Diehl Defence. The company expects this growth to continue next year, with faster contract awards and reduced legal uncertainties leading to quicker project starts and execution. More opportunities are also expected to arise from the expanded scope of procurement covering diverse defense and civilian needs.
The ability to participate in joint procurements and innovative projects could increase export and cooperation chances for Diehl Defence. Easier navigation of procurement rules could help Diehl Defence and others respond rapidly to urgent Bundeswehr demands, thereby increasing their role and revenues in German defense modernization.
The implementation of the BwPBBG is planned for early 2026 after parliamentary approval. If further detail on Diehl Defence’s concrete contracts or strategic adaptations to this law is needed, this may require additional company-specific or industry-insider sources beyond the currently available general information.
Meanwhile, Switzerland and Denmark have recently joined the eight countries in the European Skyshield initiative. Diehl Defence has been successful in ramping up production, investing in new technologies, and producing them in an operational capacity, including drone countermeasure technology. Eight countries within the European Skyshield initiative have decided to equip their armies with Iris-T SLM systems for medium ranges.
- The new legislation, the Bundeswehr Planning and Procurement Acceleration Act (BwPBBG), may include vocational training programs to prepare the workforce in the defense industry, thereby supporting the growth of companies like Diehl Defence.
- As Diehl Defence continues to expand its role in German defense modernization, it may explore collaboration with other industries for technology advancement in sports equipment, given the company's emphasis on innovation and partnership.
