German weapons manufacturer Rheinmetall has reported a sharp rise in orders for its military equipment as European governments seek to expand their defence capabilities following Russia’s invasion of Ukraine.
This was reported by the company, according to the DPA agency.
Rheinmetall notes that the increased demand for tanks, ammunition, artillery and other weapons has helped increase sales and operating income.
“Given the changing security situation, governments have made far-reaching decisions on defence procurement. Now it’s time to implement them, and it is reflected in our first large orders,” said Armin Papperger, the manufacturer’s CEO.
According to him, in just one week in July, the company received orders worth more than €7 billion, which is a record high for the company. It has also signed contracts with the German military to supply artillery and tank ammunition as part of an extended long-term procurement agreement.
According to Rheinmetall, its sales rose 6.4% to just under €1.5 billion in the quarter. Operating results increased 3.5% to €118 million.
The German arms maker claims that ammunition has become a strong driver of sales growth, as the German military’s stockpiles are severely depleted, and there is also strong demand from other European countries.
Rheinmetall’s sales growth is also driven by the fact that European nations are buying military equipment from the company as they have transferred significant stocks of ammunition and other weapons to Ukraine.
Read also: Why military aid to Ukraine has a positive effect on Western economies?
The German Ministry of Defence earlier confirmed the transfer of 25 additional Leopard 1 tanks to Ukraine. The German government signed a contract with Rheinmetall for this goal.
Earlier, it was reported that the construction of a new plant of the Rheinmetall arms concern for the production of fuselage parts for the modern F-35 fighter jet has started in North Rhine-Westphalia, Germany.
The new plant in North Rhine-Westphalia is the first such facility to be invested by the German state from the €100 billion special fund announced last February.
The German arms maker also plans to set up a repair centre for Leopard tanks and other military equipment in Ukraine.
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