The Ukrainian conflict contributed to the growth of Germany’s arms industry

The German arms conglomerate Rheinmetall has announced plans to open at least four factories in Ukraine due to the projected record profits from arms sales this year.

This is reported by France 24.

The company stated that the plants in Ukraine, which has suffered from ammunition shortages in recent months, will be dedicated to producing shells, combat vehicles, and anti-aircraft defense systems.

“Ukraine has become an important partner for us, and we see the revenue potential from sales ranging from 2 billion to 3 billion euros per year,” said Rheinmetall CEO Armin Papperger.

The conflict in Ukraine has spurred arms production in Germany, notes France 24. In 2023, the conglomerate based in Düsseldorf, which manufactures components for tanks including Leopard tanks, reported record sales volume. This year, the company aims to reach €10 billion in revenue.

In February, Rheinmetall signed an agreement with a Ukrainian company to produce artillery shells in Ukraine. The conglomerate already has a joint venture in Ukraine for military vehicle repairs.