Aug 13 (Reuters) - Rheinmetall would buy

U.S.-based military vehicle parts maker Loc Performance in a

$950 million deal, the German defense group said on Tuesday.

Michigan-based Loc is an original equipment manufacturer for

the U.S. Army's military ground vehicle track systems.

Loc's acquisition would expand Rheinmetall's industrial base

in the United States, as it aims for high-volume major orders

for the U.S. Army vehicle XM30 and common tactical truck

programs worth over $60 billion, the company said in a

statement.

Rheinmetall believes that Loc Performance's current

manufacturing capabilities are capable of meeting the critical

production requirements of the two programs.

Loc makes track systems, rubber and armor products and

fabricated structures for military, agricultural, construction,

mining, oil and gas, locomotive and mass transportation

vehicles.