Rheinmetall predicts record arms production due to Russia's war against Ukraine
Armin Papperger (Getty Images)
German arms manufacturer Rheinmetall expects record sales and increased profitability this year as the war in Ukraine drives up defense spending within the NATO bloc, a trend expected to buoy the company for years to come, according to Reuters.
Rheinmetall aims to surpass €10 billion in sales for the first time in 2024. The company's forecast also predicts an operational profit margin of 14-15%, up from 12.8% in 2023.
"A new decade of security policy has begun," said CEO Armin Papperger as the group unveiled its 2023 results, the first full year of the war in Ukraine.
Consolidated sales grew by 12% in 2023 to just under €7.2 billion, with significant growth observed in the transportation systems, weapons, and ammunition divisions.
Germany, Kyiv's staunchest military supporter in Europe, declared a turning point following Russia's invasion of Ukraine in February 2022, establishing a special defense fund of €100 billion to modernize the Bundeswehr.
Weapon production
The German defense conglomerate Rheinmetall supplies Ukraine with a significant quantity of ammunition and military equipment.
Rheinmetall is a critical strategic partner for Ukraine in the supply of 155mm artillery ammunition, with tens of thousands of shells already delivered. Tens of thousands more 155mm munitions are slated for delivery in 2024.
Additionally, Rheinmetall supplies Ukraine with infantry fighting vehicles Marder, Leopard tanks, and Gepard anti-aircraft guns.
It was previously reported that Rheinmetall would launch its factory in Ukraine this year for joint production of armaments and repair of Western equipment.
