Rheinmetall eyes increasing ammunition production in Germany, HIMARS production |
DUESSELDORF, 28 january (Reuters) – German arms maker Rheinmetall is poised to significantly increase production of tank and artillery ammunition to meet strong demand in Ukraine and the West, and may begin production of HIMARS rocket launcher systems in Germany, CEO Armin Papperger said. Reuters.
He spoke days before German defense industry chiefs meet new Defense Minister Boris Pistorius for the first time, although the exact date has not yet been announced.
With this meeting, Pistorius intends to start talks on how to speed up the supply of arms and increase the supply of ammunition in the long term after the arms donations to Ukraine have depleted the German army’s stockpiles.
Rheinmetall ( RHMG.DE ) makes a range of defense products but is probably best known for making the Leopard 2 tank’s 120mm gun.
“We can produce 240,000 rounds (120 mm) of tank ammunition per year, which is more than the entire world needs,” Papperger told Reuters in an interview.
Production capacity for 155mm artillery shells could be increased from 450,000 to 500,000 a year, he added, which would make Rheinmetall the largest producer of both types of ammunition.
In 2022, Rheinmetall tank and artillery shells fired about 60,000 to 70,000 rounds each, according to Papperger, who said production could be ramped up immediately.
Demand for these ammunitions increased after Russia invaded Ukraine last February. That’s not just because it’s being used en masse on the battlefield, but because Western militaries are stockpiling their stocks in preparation for what they see as a growing threat from Moscow.
Papperger said, for example, that a new production line for medium-caliber munitions used by German-made Gepard anti-aircraft tanks in Ukraine will be operational by the middle of the year.
Germany has been 20 of its army for months10He is trying to find new ammunition for Gepard, which was decommissioned in .
HIMARS PRODUCTION LINE IN GERMANY?
At the same time, Rheinmetall Ukraine which manufactures multiple HIMARS (High Mobility Artillery Rocket System) rocket systems widely used by its troops USA company is in talks with Lockheed Martin ( LMT.N ), Papperger said.
“At the Munich Security Conference, we aim to reach an agreement with Lockheed Martin to begin production of HIMARS (in Germany),” he said in mid-February. political and said, addressing the annual meeting of defense leaders.
“We have the technology to manufacture the warheads as well as the rocket engines – and we have the trucks to deploy the launchers,” Papperger said, adding that the deal could lead to investments of several hundred million euros to be financed by Rheinmetall. is the main part.
Rheinmetall is also considering a new powder plant in the eastern German state of Saxony, but said an investment of 700-800 million euros would have to be made by the government in Berlin.
“The state should invest, and we contribute our technological know-how. In return, the state receives a share of the plant and its income,” Papperger offer did.
“This is an investment that is not possible for the industry alone. this is national it’s an investment in security and that’s why we need a federal state,” he said.
He noted that the plant is needed because shortages in the production of special powders could hinder efforts to increase the production of tank and artillery shells.
A few days before his meeting with the new defense minister, Papperger pushed for an increase in Germany’s defense budget.
“51 in the defense budget billion Euros will not be enough to buy everything you need. And 100 billion the money in the euro special funds has already been allocated – and in part inflation ate,” he said.
“100 billion euros sounds like a huge amount, but actually 300 to order everything needed billion we will need a euro package,” he said, noting that the special fund of 100 billion does not cover the purchase of weapons.
According to a defense source, Germany even before Russia’s aggression against Ukraine NATOin order to reach the goal of the stockpile of weapons 20 billion euros were missing.
Papperger estimates that the Bundeswehr (German armed forces) would need to invest three to four billion euros a year to fill the ammunition gap alone.
Defense in negotiations with the minister chief It hopes for a shift towards more sustainable long-term planning in German procurement, stretching several years into the future, as the industry needs to be able to make its adjustments in time.
“What we’re doing now is actually a war sock: Last year we pre-financed 600-700 euros for goods,” said Papperger. “We have to get away from this crisis management — which is crisis management when you buy (raw materials and other things) without a contract — and go to business as usual.”
Reporting by Sabine Siebold, Editing by Angus MacSwan
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2023-01-29 03:01:29
Source – reuters
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