German defence firm Rheinmetall plans at least four arms factories in Ukraine
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Ukrainian servicemen firing a D-30 howitzer towards Russian troops, in Ukraine's Kherson region.
PHOTO: REUTERS
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FRANKFURT, Germany – German arms manufacturer Rheinmetall said on March 14 that it plans to set up at least four factories in Ukraine, as it targets a record €10 billion (S$14.5 billion) in sales in 2024.
The Ukraine war has boosted Germany’s weapons industry as countries seek to re-arm in the face of the growing threat from Russia, and soaring demand in 2023 propelled Rheinmetall onto the blue-chip DAX index.
The company said the factories in Ukraine – which has been suffering from ammunition shortages as Moscow makes battlefield gains – would be for producing shells, military vehicles, gunpowder and anti-aircraft weapons.
“Ukraine is now an important partner for us, where we see a potential of between €2 billion and €3 billion (in sales) per year,” Rheinmetall chief executive Armin Papperger said, at the presentation of the company’s 2023 results.
The Duesseldorf-based group – which makes parts of the Leopard tanks that Berlin agreed could be sent to Ukraine
The company’s shares soared 5 per cent in Frankfurt after the results were announced.
Germany’s largest manufacturer of military equipment had already announced an agreement with a Ukrainian company in February to build artillery shells in Ukraine.
The ground-breaking will take place soon for the plant – in an undisclosed location – and it will be modelled on an ammunition factory that Rheinmetall is building in Germany.
The company already operates a joint venture in Ukraine for repairing military vehicles.
Rheinmetall is also going to build a factory in Lithuania, where Germany plans to deploy a brigade-sized military unit on a permanent basis to help secure Nato’s eastern flank.
The company said it was planning to ramp up production of artillery shells, as Ukraine’s European allies struggle to boost output so they can provide Kyiv with more ammunition. AFP
