Rheinmetall to buy several German military shipyards

The deal was made with the Luerssen group. The companies have agreed not to disclose the transaction value and added that they plan to complete the acquisition early next year, pending antitrust approval.

“With this significant strategic acquisition, Rheinmetall is expanding its portfolio to include naval shipbuilding and strengthening its position as a leading supplier of defence technology in Germany and Europe,” the statement said.

NVL is a private group with four shipyards in northern Germany and international locations.

Rheinmetall, a manufacturer of tanks, grenades, and infantry fighting vehicles, has operated in the maritime sector for decades.

The company stated that it plans to meet growing demand from naval forces and increased procurement budgets with high-performance system solutions featuring advanced digital infrastructure.

Strategic progress

Rheinmetall expressed interest in acquiring Naval Vessels Luerssen (NVL) back in August.

Europe’s largest ammunition manufacturer has benefited from rising defense spending, as European countries have been actively investing in their armed forces following Russia’s full-scale invasion of Ukraine in 2022.

In the second quarter, the company reported sales of €2.43 billion ($2.85 billion), slightly below expectations due to delays in contract awards in Germany.

For the 2024 fiscal year, its sales reached approximately €1 billion ($1.17 billion). Overall, Rheinmetall employs around 2,100 people worldwide.

Rheinmetall is a German producer of armored vehicles, artillery systems, ammunition, air defense systems, as well as drones and electronics.

Specifically, the company supplies Ukraine with tanks, infantry fighting vehicles, self-propelled artillery systems, air defense systems, and ammunition.

Recently, Rheinmetall announced plans to build a new ammunition factory in a secure region of Ukraine.

Overall, the company intends to construct at least four weapons manufacturing plants in Ukraine.