Germany’s biggest weapon company, Rheinmetall, plans to modify two car parts factories so that they can also start producing defense material.
Rheinmetall, one of the largest in Germany and one of the largest in Europe, plans to convert two of its car factory to defense use.
Rheinmetall manufactures not only defense materials such as tanks and cannons, but also car parts for the German automotive industry. They are manufactured, for example, in two factories in Berlin and Neuts, which Rheinmetall is now planning to make changes.
Rheinmetall does not intend to make ammunition at the factories, but “protective components and mechanical components” for military use.
There is no final decision yet. In addition to the defense material, the factories would still produce some car parts for civilian use.
While Germany’s traditionally leading automotive industry has caught up, the German defense industry has been on the rise.
Rheinmetall rose to the Dax stock index of Germany’s largest companies in 2023. Where the value of the Rheinmetallic share was just over EUR 80 at the beginning of 2020, the share was now over EUR 900 in late February.
The CDU, who has recently won the German Parliament elections, has said that Germany will invest significantly in its defense in the next few years.
Source: Reuters