German arms maker Rheinmetall expects to be worth much more in the coming years. The war in Ukraine is driving high demand for munitions and armored vehicles, which led to record results for the company last year. According to CEO Armin Papperger, Rheinmetall’s stock market value could rise from 10.5 billion euros to 17 billion euros.
“This is realistic for Rheinmetall in the medium term,” Papperger said in an interview with news site Redaktionsnetzwerk Deutschland. Much of our growth can be traced back to the terrible war in Ukraine. No country in Europe is well prepared for a situation where an attacker invades. Governments have realized this, so the demand for our products is on the rise,” she explains.
The German government is an important ally of Ukraine in terms of providing military aid. For example, the country has already supplied arms and ammunition made by Rheinmetall, but the arms maker is reaching the limits of its production capacity with some types of ammunition.
‘We have the world’s largest production capacity for armored munitions. There are no problems there. But it looks different with artillery ammunition with a caliber of 155 millimeters. Now we can produce 450,000 a year, but only Ukraine needs 1 million.’
Papperger went on to say that Rheinmetall also wants to grow on non-military technology. For example, the group develops quieter heat pump compressors.
Source: BNR
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