The Danish Ministry of Defence Acquisition and Logistics Organisation (DALO) has granted Diehl Defence GmbH & Co. KG a €177 million contract for the IRIS-T SLM Surface Based Air and Missile Defence (SBAMD) system, marking a significant step in strengthening the country's air and missile defence capabilities. Under its larger national defence modernisation agenda, the contract, which was signed on July 30, 2025, is a component of Denmark's interim air and missile defence procurement. On August 6, 2025, the prize was formally announced in the European Union's Official Journal (OJ S 149/2025).
Improving Denmark's Preparedness for Air and Missile Defence
By 2026, the DALO-led procurement hopes to bridge the gap until the installation of a permanent SBAMD system by offering an intermediate air and missile defence capability. The German company Diehl Defence's new IRIS-T SLM system will greatly improve Denmark's capacity to protect its forces, territory, and NATO partners from contemporary airborne threats, such as tactical ballistic and cruise missiles.Radar units, command and control centres, and numerous fire units are all part of the system, which is a comprehensive, mobile, modular, surface-based air defence solution. It ensures operational flexibility and quick deployment capabilities throughout Danish and allied military missions by offering medium-range interception and multi-layered threat protection.
Strategic Purchasing in Light of National Security Clauses
In order to protect vital security interests, Denmark was able to circumvent established EU procurement regulations by conducting this acquisition in accordance with Article 346(1)(b) of the Treaty on the Functioning of the European Union (TFEU). The negotiated procedure without prior call for competition was justified by urgent operational needs and the sensitive nature of the equipment.Ten bids from government-to-government partners and commercial providers were assessed by DALO. Taking cost, performance, and readiness into account, the final selection gave priority to systems that would have the greatest operational impact in the shortest amount of time.
Diehl Defence was chosen for Lot 2 after the Norwegian Defence Materiel Agency was awarded the contract for NASAMS leasing (Lot 3) and MBDA France SAS was awarded the contract for VL MICA systems (Lot 1), which together constitute the basis of Denmark's multi-tiered air defence framework.
Diehl Defence: A Reliable European Defence Pioneer
Diehl military GmbH & Co. KG is a well-known leader in cutting-edge military technology, such as electronic warfare, radar integration, and missile systems, with its headquarters located in Überlingen, Germany. The company's IRIS-T SLM has become well-known in NATO and EU countries due to its performance in warfare and flexibility to adapt to multi-domain operations.Diehl's modular architecture strengthens Denmark's interoperability with ally troops by enabling smooth integration with NATO's Integrated Air and Missile Defence (IAMD) network. In order to increase detection and tracking capabilities, the contract also offers the option of a multi-sensor tracker.
Strategic and Economic Importance
This contract, which is worth €177,046,881, is among Denmark's biggest recent defence expenditures. It emphasises the government's resolve to quickly improve capabilities in the face of escalating geopolitical difficulties in Northern Europe.
Despite not being funded by EU funds, the project complies with the competitiveness and transparency requirements of the Government Procurement Agreement (GPA). By the end of 2026, deliveries and operational readiness are anticipated, and provisions for an indefinite period of time guarantee ongoing maintenance, training, and support services.
Conclusion: Fortifying the Northern Shield of NATO
A significant step towards updating its air and missile defence infrastructure has been taken by Denmark with the purchase of the IRIS-T SLM system. The system will improve collective NATO defence readiness in the Baltic and Arctic operational theatres as well as national deterrence, with Diehl defence as the reliable provider.This contract reinforces Denmark's position as a leading contributor to Europe's integrated air defence network and strengthens national security as part of the country's defence modernisation strategy.
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