AS A NEW CHANCELLOR IS INAUGURATED, GERMAN COMPANIES ARE PREPARING TO INCREASE
ARMS PRODUCTION AND STOP RELYING ON US PROTECTION
~ Omar Kardoudi, El Confidencial ~
The geopolitical shift in the landscape brought about by Donald Trump’s arrival
in the White House has forced European countries to develop their own defence
plans. And moves among European companies have not been long in falling into
line. Europe’s largest arms manufacturer, the German company Rheinmetall, has
announced that it will reorganise its facilities in Berlin and Neuss, which
until now manufactured automobile parts, to produce ammunition and other defence
products.
According to the company’s plans, both factories would become part of
Rheinmetall’s Arms and Ammunition division and serve as hybrid plants. This,
they claim, allows for the manufacture of weapons while ensuring part of the
existing automobile production.
The company states that no final decisions have yet been made regarding the new
factory structure. However, they they have said that the facilities will not
process explosives, but will instead produce protective and mechanical
components for military use.
“Above all, the plants will benefit from the industrial strength of the
Rheinmetall Group as a leading supplier of military equipment, as well as from
high customer demand in Germany and around the world,” Rheinmetall sources told
Reuters. “We are well prepared and have no reason to be timid: we must act now
for security in Europe,” said Armin Papperger, the company’s CEO.
Rheinmetall is not the only German company transforming its civilian facilities
into military production plants. Earlier this month, KNDS Deutschland announced
its intention to convert its railway carriage manufacturing plant in Goerlitz,
in the east of the country, to produce armoured vehicles such as the LEOPARD 2
tank and the PUMA infantry fighting vehicle.
A BET ON MILITARY SPENDING
Trump’s pressure on Europe to increase its military spending and the recent
security summit held in Munich following the US president’s sidelining the EU
and Ukraine in peace talks with Russia have caused the shares of European arms
manufacturers to soar.
The STOXX Aerospace and Defence Index (.SXPARO) reached all-time highs last
week. Investors are betting that European governments will ramp up spending on
weapons and military equipment to alleviate their defence dependence on the US.
“For me, it will be an absolute priority to strengthen Europe as soon as
possible so that, step by step, we truly stop depending on the United States,”
said Friedrich Merz, the likely new German chancellor, in a television talk show
with the main candidates in the German general elections.
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Image: Andre Potzler CC BY 2.0
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