A German arms manufacturer is planning to build at least four manufacturing plants in Ukraine with the aim of achieving record sales of 10 billion euros ($10.9 billion) this year.
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Rheinmetall posted record sales of 7.2 billion euros last year, largely from the Ukraine conflict, and is aiming for 10 billion euros by 2024. (Source: AFP) |
The conflict in Ukraine has boosted Germany's arms industry as many countries seek to rearm in the face of the growing threat from the fighting, which has dragged on into its third year, AFP reported.
Since last year, soaring demand has pushed the stock index of German arms giant Rheinmetall into the blue-chip DAX, which includes 40 major listed corporations in the European Union's (EU) largest economy.
Speaking at the company's 2023 business results announcement on March 14, Rheinmetall CEO Armin Papperger affirmed: "Ukraine is now an important partner for us, where we see the potential to reach 2 to 3 billion euros (in revenue) per year."
At this meeting, Rheinmetall confirmed that it is planning to build at least four weapons factories in Ukraine.
Accordingly, factories in Ukraine - a country lacking ammunition as Russia gains an advantage on the battlefield - will produce artillery shells, military vehicles, gunpowder and anti-aircraft weapons.
Rheinmetall, based in Duesseldorf, makes parts for Leopard tanks, which Berlin agreed to deliver to Ukraine after much hesitation. Rheinmetall posted record sales of €7.2 billion last year and is aiming for €10 billion by 2024.
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