German company Rheinmetall, which manufactures military equipment for Ukraine, experienced a triple increase in the value of its stocks in 2022. According to forecasts, the company expects a growth rate of 20-30% per year.
Photo: RND
According to information published by the German RND, the main reason for such significant growth is associated with the recent military situation in Ukraine. The aggression against Ukraine has served as a signal to European governments that none of them is prepared for such an invasion. As a result, there has been a substantial increase in demand for Rheinmetall’s products.
Armin Papperger, CEO of Rheinmetall, stated, “A significant part of our growth is connected to the terrible war in Ukraine. No country in Europe is prepared for an aggressor’s invasion. Governments have realized this, which is why there is a growing demand for our products.”
In an interview with Rheinische Post newspaper in March of this year, Armin Papperger announced that due to the lack of capacity to supply Ukraine, the German arms manufacturer Rheinmetall is in negotiations for the construction of a tank factory in Ukraine.
The estimated cost of the project is 200 million euros, with a production capacity of up to 400 tanks per year.
“The negotiations with the Ukrainian government are promising, and I hope a decision will be made within the next two months,” stated Papperger.
According to his assessment, in order to succeed in the war, Ukraine needs between 600 and 800 tanks, and production needs to be established promptly to meet this demand.
“Even if Germany were to transfer all 300 Leopard 2 tanks from the Bundeswehr’s reserves, it would still be insufficient,” added Armin Papperger.
