U.S. Defense Contractor Opens Facility in Leipzig

The U.S. defense contractor Covenant has opened a production facility in Leipzig to manufacture long-range cruise missiles. Production of the Anthem weapons system is scheduled to begin in 2027, said company CEO Michael Kaufman. In the first year, 1,000 units are expected to be produced in the Saxon city. The goal for 2028 is to produce 5,000 units.

Leipzig will be Covenant’s largest facility worldwide, Kaufman said. European customers will be supplied from there. In the future, several hundred people are expected to work in production. The U.S. company also has a factory in Dallas, Texas, as well as a facility in Israel.

Weapons Systems as the Foundation for European Defense

Johannes Steiniger, State Secretary at the Federal Ministry for Economic Affairs, emphasized the need for deterrence. “The best cruise missile is the one that never has to fly, but can,” he said. Covenant is investing around 250 million euros. A U.S. company is helping to build the foundation for Europe’s defense—that is a strong political signal.

Anthem can carry a 200-kilogram warhead and, according to Steiniger, has a range of well over 1,000 kilometers. The cruise missile is described as a weapon for precision strikes deep within enemy territory (“deep strike”). 

The missiles are assembled in Leipzig. According to the company, they are loaded with explosives only on-site at the customers’ locations. With a targeted annual production of 5,000 units, armies in Europe would be able to build up significant stockpiles, the state secretary said.

The company aims to offer the weapon system at a significantly lower price than systems currently available on the market. Covenant explains that Anthem will cost a six-figure amount—that is, less than one million—while other weapon systems of this type typically cost several million U.S. dollars each.

Kretschmer: Deterrence Is the Best Security

Saxony’s Minister-President Michael Kretschmer (CDU) welcomed the US company’s establishment in the state. “We are living in a time when we must ensure our security. Freedom, democracy, and prosperity are impossible without security. And the best security is still deterrence. That’s why it’s good that we’re also active in this area,” said the CDU politician.

The production facility is located in northern Leipzig. Covenant has leased an existing industrial building. Before production can begin, the authorities must still approve the rezoning of the warehouse into a manufacturing facility. However, this is said to be more of a formality.

Covenant was founded as recently as 2024 and is headquartered in Washington, D.C. According to the company, it has raised more than 250 million U.S. dollars (215 million euros) from investors in three funding rounds.

Among the investors is Founders Fund, of which Peter Thiel is a co-founder. He is known for his libertarian and right-wing conservative views, his close ties to U.S. President Donald Trump, and his criticism of liberal democracies.