Rheinmetall eyes significant business expansion over the next years

  • Mihai Turcanu
  • 22.3.2018 15:38

On 15 March, Rheinmetall CEO, Armin Papperger stated that the company anticipates an average of 10% in annual sales through 2020. The German arms manufacturer expects the growth to be driven by Bundeswehr orders, EU defence projects, and an increase in digitalisation projects.

For 2018, the company expects its sales to grow by 8-9%, a significant hike from the 3% previously reported for 2017. The growth's lion's share will come from Bundeswehr orders accounting for more than 30% of the manufacturer's defence-related business, with an average of € 2 billion in orders for the coming years. In spite of this, the EU common defence initiatives, and of the fact that the German government will invest in defence an additional € 10 billion over the next 4 years, Rheinmetall has expressed concerns over the future of the European defence industry. It cited, for instance, Germany's decision to reduce arms exports that the manufacturer believes will hurt common arms projects with France, Poland, and Italy. To address these issues, and to consolidate the European defence industry, there is an acute need for a common EU arms export law, Papperger stated. Aside from such structural challenges, the European defence industry has to overcome EU's growing technological lag, as well as resist the assertive US competition.  

About author: Mihai Turcanu

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