Red Cat plans to power military boats with Steyr engines

US defence group Red Cat plans to use engines made by Steyr Motors in its unmanned military boats, as it seeks to acquire the Upper Austrian company. The deal could make the Steyr plant an important supplier to US military technology, ORF reports.

The boats operate without crews and can be remotely controlled for reconnaissance, protecting important facilities or armed missions. Red Cat expects global demand to reach several tens of thousands of unmanned surface vessels in the coming years. Company representative Barry Hinckley visited Steyr on Friday.

Red Cat considers Steyr’s diesel engines particularly suitable because of their patented design, power relative to weight and manufacturing quality. The group wants the planned acquisition to secure access to the engines. Hinckley described them in an interview with ORF as the best marine diesel engines in the world.

Steyr Motors chief executive Julian Cassutti said the deal would give the company access to the US Department of Defense and could bring additional orders as soon as 2027. The opportunity also extends beyond boat engines to power generators made in Steyr, which can be used to charge drones in the field.

If growth forecasts are met, the company could expand production beyond its current single shift, creating a need for more employees. Steyr Motors has a three-year guarantee for the site. Hinckley said Red Cat did not plan to move production, arguing that quality mattered more than producing the engines at lower cost. Cassutti said the plant’s decision-making autonomy would change little, although coordination with US partners would increase.

Red Cat has offered 205 million euros for Steyr Motors and is in talks with shareholders about selling their stakes. Shareholders can accept the offer until December 18. A decision on whether the acquisition will proceed is expected by next spring.