German arms manufacturer Rheinmetall aims to reach 10 billion euros in revenue by 2024 (Photo: AFP).
The Russia-Ukraine war has boosted Germany's arms industry, as countries seek to rearm.
Rheinmetall said its factories in Ukraine - which have been suffering from ammunition shortages as Russia gains ground on the battlefield - would produce artillery shells, military vehicles, gunpowder and anti-aircraft weapons.
“Ukraine is now an important partner for us, where we see the potential to generate 2-3 billion euros in revenue per year,” Rheinmetall CEO Armin Papperger said at the company’s 2023 results presentation.
The Duesseldorf-based group, which makes parts for Leopard tanks that Berlin may agree to send to Ukraine after much hesitation, reported record sales of 7.2 billion euros in 2023 and is aiming for 10 billion euros in 2024. The company's shares rose 5% after the earnings report was released.
Germany’s largest military equipment maker announced a deal in February with a Ukrainian company to produce artillery shells in the country. Groundbreaking will soon take place at an undisclosed location and will be modeled after the ammunition factory Rheinmetall is building in Germany.
Rheinmetall already operates a joint venture in Ukraine to repair military vehicles. The company will also build a plant in Lithuania, where Germany plans to permanently deploy a brigade-sized military unit to help defend NATO’s eastern flank.
Rheinmetall is also planning to increase production of artillery shells, as Ukraine's European allies are working to increase production to be able to supply more ammunition to Kiev.
Source
Comment (0)