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Iris-T Maker Teams Up With Ukraine To Upgrade Neptune Missiles And Build Cheaper Air Defense

Germany’s Diehl Defence has signed agreements on technological cooperation with Ukrainian defense developers, potentially enabling upgrades to a range of missile and air defense systems, including those produced by Kyiv-based design bureau Luch.
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According to Defense Express on April 15, the agreements were formalized at the Embassy of Ukraine in Germany on April 14. While no specific projects have been disclosed, the combined portfolios of Diehl Defence, Luch, and Ukrainian company Fire Point suggest a focus on missile technologies and air defense capabilities.
Diehl Defence is best known for its IRIS-T family of air-to-air and surface-to-air missiles, including the IRIS-T SLM system currently in service with Ukraine. The system has been widely used by Ukraine’s Air Force for air defense operations.

Ukrainian partners bring complementary capabilities. Fire Point produces FP-1 and FP-2 strike drones, which have been used in operations against Russian targets, including air defense systems.
The company has also developed cruise and ballistic missile concepts, including the FP-5 “Flamingo” and FP-7 and FP-9 projects, and has previously proposed cooperation with Western manufacturers on air defense solutions, according to Defense Express.

Luch, a key Ukrainian missile developer, is known for systems such as the Neptune anti-ship missile, the Stugna-P anti-tank guided missile, and the Vilkha guided rocket system. It has also presented the Coral air defense concept prior to Russia’s full-scale invasion.
According to Defense Express, the cooperation could involve integrating German expertise in guidance systems and interceptor technologies, potentially reducing the cost of air defense interceptors while maintaining effectiveness.

The report notes that such collaboration may also extend beyond air defense to other missile categories, given overlapping product lines between the companies.
Diehl Defence is also involved in joint production of anti-ship missiles such as the RBS 15 with Saab and participates in manufacturing anti-tank systems like PARS 3 LR and SPIKE in Germany. These areas could provide additional avenues for collaboration with Ukrainian systems such as Neptune and Stugna-P.

The report adds that Diehl Defence is currently working on munitions for the MARS 3 (EuroPULS) multiple launch rocket system, including 122 mm rockets. This could be relevant for potential upgrades to Ukraine’s Vilkha system.
According to Defense Express, Germany has committed to supporting Ukraine in strengthening its air defense, including accelerating the development of capabilities to counter ballistic missile threats.

Within this framework, the newly signed agreements are expected to prioritize air and missile defense technologies, while leaving room for broader joint development efforts based on operational experience gained during the war.
Earlier, Ukraine and Germany discussed launching joint projects on advanced laser weapon systems, alongside broader cooperation on air defense and drone development, according to the Ukrainian Defense Ministry on April 10.
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