The German defense giant is preparing to create a new enterprise in Ukraine in the short term. As of July 24, Rheinmetall has an official order from the Ukrainian authorities.
Points of attention
- Rheinmetall is embarking on the construction of an ammunition factory in Ukraine following an official order from the Ukrainian authorities to produce 155 mm artillery shells.
- The project aims to enhance Ukraine's defense capabilities and is part of Rheinmetall's efforts to support the country's reindustrialization.
- Rheinmetall's profit surged by 111% in the second quarter, driven by increased sales of weapons and ammunition to military customers, amidst tensions with Russia.
Rheinmetall begins construction of an ammunition manufacturing plant in Ukraine
The German defense concern Rheinmetall received an order from the government of Ukraine for the construction of an ammunition factory, which was announced in February.
It is expected that the implementation of the project will begin in the short term. And the production of ammunition will begin within 24 months.
The exact value of the deal is not specified, Rheinmetall describes the amount as "low three-digit million euro" (that is, it is more than 100 million euros).
The enterprise should produce 155 mm caliber artillery shells, in particular projectile charges. The exact volume of production is not specified, but it will be a "six-digit number", that is, not less than 100 thousand ammunitions per year.
We are putting words into practice and together with our partner will create a Ukrainian ammunition production center. The order underlines the confidence in the experience and production capacity of Rheinmetall. We are grateful for the opportunity to support the country in its reindustrialization and strengthening of defense capabilities.
Armin Papperger
CEO of Rheinmetall AG
Rheinmetall profits grow amid Russia's war against Ukraine
Rheinmetall AG's profit rose 111% in the second quarter as Germany's biggest arms maker sold more weapons and ammunition to military customers.
Operating profit jumped to 271 million euros ($294 million) after revenue roughly doubled.
Rheinmetall is one of a number of European arms contractors whose sales have risen amid Russia's threat to Europe.
The last few weeks have been very stormy for Rheinmetall, which plans to build a plant for the production of ammunition in Ukraine.
The arms and ammunition division, which was strengthened by the acquisition of Spanish ammunition manufacturer Expal, remains a key growth driver. Orders rose to €11.4bn from €3.9bn in the first quarter, following strong orders mainly from the German Bundeswehr.
Shares of Rheinmetall rose 3.4% in Frankfurt am Main. This year they increased by 76%.
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