Latest news with #Papperger
Reuters
28-03-2025
- Automotive
- Reuters
Rheinmetall CEO visits VW plant as defence firms look to expand
BERLIN, March 28 (Reuters) - Rheinmetall ( opens new tab CEO Armin Papperger visited Volkswagen's Osnabrueck plant on Friday as part of a delegation of Europe's top ammunition maker, labour representatives said, in the latest sign of closer cooperation between the defence and auto sectors. Papperger earlier this month said Volkswagen's factory in Osnabrueck, which may be repurposed or sold as part of the carmaker's revamp, would be"very suitable" for defence production. Papperger's visit comes as German defence firms are seeking ways to expand amid European efforts to ramp up military spending, with struggling automotive firms a possible source of staff and production sites. Sources close to Volkswagen said that the visit was to explore possible further cooperation within an existing joint venture between Rheinmetall and Volkswagen's commercial vehicle brand MAN. Rheinmetall owns 51% in Rheinmetall MAN Military Vehicles, with the remainder held by MAN Truck & Bus SE, a division of Traton ( opens new tab, the truck maker majority-owned by Volkswagen. "As IG Metall, we see numerous opportunities to establish new contract manufacturing for various industries under the Volkswagen umbrella," Stephan Soldanski of the IG Metall labour union in Osnabrueck said. "It would be short-sighted to focus solely on the defence industry instead of actively promoting alternative economic sectors and forward-looking concepts."
Yahoo
16-03-2025
- Business
- Yahoo
Rheinmetall's stock has soared over 1,000%, and the German defense giant sees growth ‘that we have never experienced before'
German defense contractor Rheinmetall's stock price has skyrocketed more than 1,000% since Russia invaded Ukraine in 2022. As the EU plans a €800 billion boost in defense spending, Rheinmetall expects growth to remain strong. German defense contractor Rheinmetall sees unprecedented gains ahead as Europe embarks on a massive military buildup, even after reporting already-strong growth. Headquartered in Düsseldorf, Germany, the company reported 2024 total revenue of €9.8 billion on Wednesday, up 36% from 2023. The defense business led the company's sales growth last year, surging 50% to €7.6 billion. Additionally, the backlog increased 44% to €55 billion a new record high. Last year's growth was helped by Europe's continued military aid for Ukraine. Since Russia invaded Ukraine in 2022, Rheinmetall's stock price has climbed more than 1,000%. Meanwhile, the European Union recently announced plans to increase its defense spending by €800 billion ($867 billion) as historic US allies seek to take more responsibility for their security. 'An era of rearmament has begun in Europe that will demand a lot from all of us,' CEO Armin Papperger said in a statement. 'However, it also brings us at Rheinmetall growth prospects for the coming years that we have never experienced before.' For this year, Rheinmetall expects total sales to increase 25%-30% and defense sales to climb 35%-40%. While those numbers would fall short of 2024's, actual sales by the end of the year could turn out to be even bigger. Rheinmetall noted in its report the outlook does not take into account 'geopolitical developments in recent weeks,' saying updates to its forecasts could come later as requirements of its military customers become clearer. 'With a 50% sales growth in the defence business, Rheinmetall is on its way from being a European systems supplier to a global champion,' Papperger said. In recent years, the European leader in munition production invested nearly €8 billion in new manufacturing facilities, acquisitions, and supply-chain security. In January, Rheinmetall announced it acquired a majority share in a Bavarian software developer that specializes in digitizing warfare. In addition to manufacturing missiles and bombs, Rheinmetall also makes tanks, air-defense systems, and autonomous ground vehicles. Most notably, it produces the Panther KF51 main battle tank. A major supplier to Ukraine, Rheinmetall has plants in the war-torn country along with Lithuania, Hungary, and Romania. Additionally, the company looks to continue its growth in Germany and is reportedly interested in a Volkswagen plant in Osnabrük. On Wednesday, Papperger said the facility would be 'very suitable' for the company's expansion plans and would be more affordable than building a factory from the ground up. Papperger cautioned that while there was no concept for Rheinmetall to move onto Volkswagen's turf, things could still move quickly. 'One thing is clear: before I'll build a new tank factory in Germany, we'll of course take a look at it,' he said. This story was originally featured on Sign in to access your portfolio
Yahoo
13-03-2025
- Business
- Yahoo
Rheinmetall expects robust 2025 sales amid Europe's defence push
By Miranda Murray and Matthias Inverardi BERLIN (Reuters) - Rheinmetall, a major beneficiary of Europe's big push to invest in defence, said on Wednesday it expects significant sales growth in 2025 and that it would update its outlook to take into account recent developments in the war in Ukraine. "An era of rearmament has begun in Europe that will demand a lot from all of us. However, it also brings us at Rheinmetall growth prospects for the coming years that we have never experienced before," CEO Armin Papperger said in a statement. Shares jumped 6.2% in midday trading, making Rheinmetall was the top gainer in percentage terms on Germany's benchmark DAX index. The stock has more than doubled within a year to about 1,230 euros. Europe's top ammunition maker is betting on a surge in spending by European leaders who back Ukraine in its conflict with Russia, amid ructions in U.S. policy towards the region following President Donald Trump's inauguration. On Tuesday, the U.S. agreed to resume military aid and intelligence sharing with Ukraine, which said it would accept a U.S. proposal for a 30-day ceasefire. Rheinmetall expects sales to surge 25% to 30% this year, after coming in slightly under 10 billion euros in 2024, and an operating margin of 15.5%, slightly above last year's 15.2%. The defence business makes up 80% of the company's sales. The outlook does not take into account "improvement in market potential that is expected to arise," Rheinmetall said, adding that it expected to update that guidance soon. The European Commission wants to mobilise up to 800 billion euros ($863 billion) for European defence, and Germany's likely next chancellor, Friedrich Merz, wants to amend the constitution to allow for a big jump in state borrowing to revamp the military. 'SIGNIFICANTLY BEAT EXPECTATIONS' Rheinmetall calculated that a rise in the NATO defence spending target to 3.5% of gross domestic product would translate to up to 400 billion euros for the company by 2030, assuming a capture rate of up to 20-25%. "We have not done enough work yet to endorse this view, but if it were to be correct then Rheinmetall could significantly beat even the highest of investor expectations for its sales and EBITA in the coming five years," said JP Morgan analysts. CEO Papperger played down the effect German defence spending plans could immediately have, saying it would take months before contracts would materialise. Rheinmetall, which aims for 2 billion euros in business in the U.S. by 2027, is vying for a contract to develop a successor to the U.S. Bradley infantry fighting vehicle. Rheinmetall reported 2024 group sales of 9.75 billion euros, up 36% on the year but below the 9.99 billion in a company-provided estimate of analysts polled by Vara Research. Papperger said that the company came in just short of the 10-billion-euro mark due to a logistics delay that forced it to shift around 250 million euros to the 2025 financial year. The company's civilian business offered a mixed picture, with products for carmakers in particular on the decline. Rheinmetall said last month it intended to repurpose two of its automotive plants in Germany to mostly make defence equipment, and Papperger on Wednesday left open the possibility of even more civilian factories to be converted. ($1 = 0.9174 euros)
Yahoo
13-03-2025
- Business
- Yahoo
Rheinmetall prepared to supply arms for possible Ukraine peacekeeping mission
German defense company Rheinmetall is prepared to supply weapons for a potential international peacekeeping mission in Ukraine following the end of Russia's war, the company's CEO, Armin Papperger, said on March 12, Deutsche Welle reported. Papperger said that Rheinmetall could provide "more than 2,000 items" for such a mission, including tanks, armored vehicles, electronic warfare systems, reconnaissance drones, and satellite technology for monitoring a demarcation line. Several European countries, including the U.K., France, Denmark, and Sweden, have previously expressed willingness to deploy peacekeepers to Ukraine. The Washington Post reported on Feb. 17 that up to 30,000 European troops could be involved in the ceasefire monitoring mission. Papperger noted that the talks remain theoretical for now, with no concrete negotiations underway with the company. While U.S. President Donald Trump claimed on Feb. 24 that Russian President Vladimir Putin would allow European peacekeepers in Ukraine as part of a peace deal, Russian Foreign Minister Sergey Lavrov has rejected the idea. Rheinmetall is one of Europe's largest arms manufacturers and a key supplier to Ukraine. Under German government contracts, it delivers 155 mm artillery rounds, Leopard 1 tanks, mortar shells, and surveillance drones. The company also opened a military vehicle repair facility in Ukraine in June 2024 and plans to build three additional plants in the country. Read also: UK, France lead talks among 37 countries on 'coalition of the willing' in Ukraine, Bloomberg reports We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
Reuters
12-03-2025
- Automotive
- Reuters
VW's Osnabrueck plant would be 'very suitable' for defence production, Rheinmetall CEO says
DUESSELDORF/FRANKFURT, March 12 (Reuters) - Volkswagen's factory in Osnabrueck would be a good fit for a conversion to military production, the CEO of Rheinmetall ( opens new tab said on Wednesday, as the German carmaker considers ways to repurpose the site that could include a sale. Armin Papperger, speaking to journalists after forecasting strong sales growth for 2025, said that while Rheinmetall could repurpose more of its own automotive plants, buying sites from carmakers under the right conditions was also possible. here. Tank factories required heavy-duty cranes and corresponding load-bearing capacities, Papperger said, adding substantial orders, for example for the Lynx infantry fighting vehicle, would be required before investing in new locations. "Then you can also consider whether a plant like Osnabrueck, which I think would be very suitable, (...) whether you could get involved," Papperger said. Volkswagen in December said it was exploring alternative scenarios for the site's future use, raising hopes for a sale that could protect workers and save the carmaker restructuring costs. Papperger's comments come two weeks after Rheinmetall said it would repurpose two of its own automotive sites to mostly make defence equipment, something he said could also happen at some of its other sites. German defence companies seeking more capacity as Europe prepares to raise military spending are also taking on workers from the ailing car industry, the first sign of a shift that could help revive the continent's biggest economy after two years of contraction. Papperger said that Rheinmetall was in regular talks with Volkswagen via an existing collaboration in military truck production, adding that while there was no existing concept for Osnabrueck, things could move quickly if conditions are right. "One thing is clear: before I'll build a new tank factory in Germany, we'll of course take a look at it," Papperger said, adding Rheinmetall could even sell its entire automotive Power Systems division if it got a decent offer. Rheinmetall, Europe's biggest ammunition maker, owns 51% in Rheinmetall MAN Military Vehicles, with the remainder held by MAN Truck & Bus SE, a division of Traton ( opens new tab, the truck maker majority-owned by Volkswagen. Volkswagen CEO Oliver Blume on Tuesday told broadcaster ZDF that while there were no in-depth talks with the defence industry regarding Osnabrueck, there was ample room for potential options.
