Rhine metal Could two of his works in which civil components are currently being manufactured on production for the booming end military area change the group. “In the armaments business, Rheinmetall is currently using all the options to increase the number of quantities, especially in the ammunition area,” said the Düsseldorf -based company on Monday. Rheinmetall intends to produce products or components for the “Weapon and Ammunition” division at two German locations that have previously been part of the civilian division. It is about the locations in Berlin and Neuss. “However, final decisions about the design have not yet been made,” it said.
No explosives at the new locations
In order to continue to secure occupancy and employment at the two locations in the future, Rheinmetall management is planning to transferred works to the Weapon and Ammunition division and to make them “hybrid locations”. In addition to activities in the civilian area, this will in future be built in Neuss components for military needs. In addition to the activities in fuel cell technology, the Berlin plant should predominantly produce mechanical components for military needs in the future. A concept for this has already been presented to the workforce. It is now being coordinated with representatives of the workforce. Explosives should not be processed at the locations, Rheinmetall emphasized. The two works would “in future benefit from the industrial strength that the Rheinmetall Group has as an important military supplier”.
The “Power Systems” division produces products for the automotive and energy industry. The business area suffers from the crisis of the Automotive industry. The civilian business, bundled in Power Systems, recorded a slight decline in sales in the first nine months of 2024 in contrast to the other booming business areas of Rheinmetall to 1.543 billion euros. The operational result shrank by 3.8 percent to 74 million euros. For comparison: In the Weapon and Ammunition division, sales climbed around 64.3 percent to 1.554 billion euros in the same period, the operating result doubled almost to 339 million euros. Overall, sales in the Rheinmetall Group rose to 6.2 (4.6) billion euros.
High price gains for armaments companies
In view of the increasing defense expenditure of Western states, armaments companies record on the Russian attack on the Ukraine rapid growth. “We are experiencing growth that we have never had in the group,” said Rheinmetall boss Armin Papperger (62). The decoupling of the new US government of Europe and its pressure on NATO countries to invest more in the armor could also ensure full order books even with a ceasefire in Ukraine. The Rheinmetall share also reacted to the result of the Bundestag election on Monday and the associated hopes in armaments investments, it rose by more than 4 percent.
“I think that for our company means that we have to grow even more than before,” said Papperger Reuters. The German auto industry, on the other hand, causes problems to transition to electromobility, and the sales are also laminated in China. Works are also switched to armaments production in other weakening industries.
The Franco-German Panzerbauer KNDS recently took over the work of the railway technology group Alstom in Görlitz and wants to continue working half of the 700 employees. Rheinmetall had already 100 employees of the deficit brake work of Continental In Gifhorn the change to a ammunition factory offered. The armaments electronics manufacturer Hensoldt also wants to take over employees of Continental and Bosch, to whom the loss of the job threatens.