Germany’s largest weapons manufacturer, Dusseldorf-based Rheinmetall, is profiting mightily off the war in Ukraine, recording a surge of new orders as the war drags on, according to a new report out of Die Welt on Friday which cited company data.
The report noted that the company saw orders in 2022 increase by 18% over the prior year. It has now undertaken a program to significantly increase its production.
According to the report, the arms maker is setting up a new munitions production line in its Rheinmetall plant in Lower Saxony soon, and it will have to hire several hundred new workers. It intends to increase the company’s output capacity to a level not seen since the 1980s, capable of producing 600,000 rounds of ammunition each year.
The news outlet reported that already there are thousands of people who work in three shifts at the plant in order to accelerate the production capacity for current orders. The work includes maintenance and repair of Leopard 2 tanks as well as Panzerhaubitze 2000 self-propelled artillery units and Marder infantry fighting vehicles, and ammunition production for Ukraine.
The contractor reportedly is planning on experiencing double digit growth in sales over the coming years. According to the company’s forecast, Germany by itself will need to purchase €40 billion ($43.6 billion) worth of ammunition by 2031. In addition, just this week, the Bundeswehr ordered 367 protected and unprotected logistic vehicles from Rheinmetall worth roughly €285 million.
Reportedly, in 2022 Germany ranked sixth globally for weapons exports, with the conflict in Ukraine leading Defense contractors to experience order backlogs and soaring profits as nations across the globe sought to replace weapons and munitions which had been sent to Ukraine. Last year, estimates were that Berlin had approved arms exports totaling more than €8.35 billion, the second highest amount ever for the country, following its all time high of €9.35 billion in 2021.
Rheinmetall reported than in 2022, earnings came in at a record €6.4 billion, up 27% over the figures for 2021, as the company enjoyed a record backlog of orders worth €26.6 billion. Consolidated sales for the company were up by about 7.6%, or €97 million year over year in the first quarter, to €1.4 billion. Order backlogs increased 8% from one year prior, to €28.2 billion.
