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Rheinmetall Eyes Record Growth as European Defense Spending Surges

Germany's largest weapons contractor considers repurposing Volkswagen plant while expanding to meet rising demand for arms.

The factory of Volkswagen Osnabrück GmbH is located in the Fledder district of the city of Lower Saxony, Germany.
Rheinmetall is eyeing up vacant Volkswagen space in a bid to expand Europe's weapons capabilities.
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Overview

  • German defense giant Rheinmetall reported a 30% growth in its defense business last year, with sales reaching €9.8 billion ($10.6 billion).
  • The company predicts sales growth of up to 40% in 2025, fueled by increased European military spending and geopolitical shifts.
  • Rheinmetall is evaluating the potential acquisition of Volkswagen's Osnabrück plant to expand its production of armored vehicles.
  • The company's stock has soared over 1,000% since 2022, surpassing Volkswagen in market value as Germany's industrial focus shifts from automotive to defense.
  • CEO Armin Papperger highlighted the company's role in supplying Ukraine and emphasized the importance of trans-Atlantic ties despite political tensions.