Rheinmetall Landsysteme GmbH
Rheinmetall Berlin AG, the parent company of a group of more than 60 industrial manufacturing firms, is a leading German producer in each one of its four primary fields: defense technology, paper and packaging machinery, high-tech automotive components, and, since 1993, office furniture. For most of its 100-year history, Rheinmetall Berlin and its predecessor corporations have been primarily involved in the weapons industry, and it was not until the 1980s that the balance of production shifted to nonmilitary industrial equipment.
Rheinmetall After the Cold War
With the end of the Cold War and resulting cutbacks in military spending, not only the group as a whole, but even the Defense Technology subsidiary Rheinmetall GmbH began to look for ways to expand into related nonmilitary technology. By 1989 the corporate strategy was redefined along with deeper diversification into nonmilitary industrial products, specifically security technology - caused by the fall of the Berlin Wall and by the East-West détente. Competence expanded in 1990 with the takeover of MaK Systemgesellschaft, a manufacturer of armoured vehicles. Rheinmetall AG operated in the markets for automotive components. Rheinmetall grew considerably through a number of acquisitions from 1993 onwards.
With the acquisition of Oerlikon Contraves AG (Zurich) in September 1999 Rheinmetall DeTec AG has consequently improved its competence as army systems supplier and at the same time its international competitiveness; Oerlikon Contraves AG is a world-wide recognised supplier of gun- and guided missile systems for air defence. [In the course of consolidating its global air defence operations, in 2008 Rheinmetall Defence renames Oerlikon Contraves AG "Rheinmetall Air Defence AG" ] In 2000, Rheinmetall Landsysteme, GmbH (formerly Thyssen Henschel) was established by the merger of the companies Thyssen Henschel, Rheinmetall GmbH, KUKA Wehrtechnik and MAK System. The lead in the market for land forces technology is lengthened through carefully targeted M&As. By acquiring a stake in the German AIM Infrarot-Module and taking over the Austrian medium-caliber specialist Arges, the Company pushed ahead with its policy of globalization and rounding off the product portfolio.
With the 2007 acquisition of a 51-percent majority holding in the Bonn-based Chempro GmbH and its first stake in ADS Gesellschaft für aktive Schutzsysteme mbH based in Lohmar, Rheinmetall Defence is expanding its position as a supplier of land forces systems. Rheinmetall Defence took over Dutch vehicle maker Stork PWV B.V. from its parent company Stork N.V. of Amsterdam in 2008, bolstering Rheinmetall's position as Europe's leading supplier of systems for ground forces, and reinforcing its role in the Boxer project, one of the most important army technology programs in Europe. Underscoring the company's increasingly international outlook, later in 2008 Rheinmetall acquired a 51% share in the South African defence contractor Denel Munition (Pty) Ltd. of Pretoria, widening its global lead in the world of weapons systems, ammunition and propellants.
In 2009 the first serially produced Boxer armoured transport vehicle is transferred to the Organisation Conjointe de Coopération en matière d'Armement (OCCAR) and Germany's Federal Office for Defence Technology and Procurement (BWB). The Boxer provides the armed forces of Germany and the Netherlands with a highly protected, highly mobile transport vehicle, specifically designed to meet the challenges of modern military operations. In 2010 Rheinmetall AG and MAN Nutzfahrzeuge AG joined forces to found Rheinmetall MAN Military Vehicles GmbH (RMMV). The joint venture company supplies the world's armed forces with a complete range of wheeled transport, command and multipurpose vehicles, including armoured and non-armoured tactical systems.
Rheinmetall Werk Niedersachsen ammunition
On February 13, 2024 Rheinmetall announced an important strategic step to bolster Germany’s national security preparedness. The Düsseldorf-based tech enterprise is building a new factory at its Unterlüß site in the Lüneburg Heath in Lower Saxony, further enhancing the country’s self-reliance in ammunition production. Chancellor Olaf Scholz, the Prime Minister of the Kingdom of Denmark, Mette Frederiksen, and German defence minister Boris Pistorius joined Rheinmetall AG executive board chairman Armin Papperger for the official ground-breaking ceremony of “Werk Niedersachsen”, the Group’s new ammunition factory. Numerous other prominent personalities from the world of politics, administration, the armed forces and industry were present as well.
In future, Werk Niedersachsen will produce artillery ammunition, explosives and rocket artillery components. The factory will eventually manufacture some 200,000 artillery shells a year, along with up to 1,900 tonnes of RDX explosive and, optionally, other components for producing ammunition charges. In addition, production of rocket engines and possibly warheads could take place here, which will be necessary for the planned German rocket artillery project, for example.
“To secure Germany’s strategic sovereignty in the large-calibre ammunition domain, we’re creating a national production facility that sets new standards and will primarily meet the needs of the German Bundeswehr”, declares Armin Papperger, going on to note that “with Werk Niedersachsen, we’re establishing another European centre for producing artillery ammunition and other effectors at our historic Unterlüß site. The move reflects our sense of responsibility and resolve to contribute materially to the ability of our country and our NATO partners to defend itself.”
This company-financed project represents investment volume in the €300 million range. Rheinmetall is therefore shouldering the entire cost of constructing the factory, with no government involvement. The factory will also mean around 500 new jobs in Unterlüß.
Rheinmetall’s new factory will make it possible to meet the Bundeswehr’s own needs through domestic production and – especially in a crisis – to assure unrestricted transfers to partner nations. Previous dependency on export permits issued by other countries will thus be eliminated, giving Germany full sovereignty in this national security-relevant domain. In the process, Rheinmetall will create a complete value-added chain for artillery ammunition in Unterlüß, enabling it to offer the ‘full shot’ from a single source, including the shell, fuse, explosive charge and propelling charge.
Werk Niedersachsen will operate largely autonomously, with all the work steps necessary for producing artillery shells carried out on location. In building this plant, Rheinmetall is pursuing a modular, scalable concept for assuring a secure supply of ammunition, one with the potential for additional growth.
The top priority for the new factory is the earliest possible start of production. Following a construction period of around twelve months – proceeding from the date of the contract – annual capacity will be 50,000 shells a year. Germany’s initial share of value added will come to 50 percent, gradually increasing in the second year of production to 80 percent and to 100 percent in the third. By this point, Germany will have a fully autarkic supply of artillery ammunition, with value added generated entirely at home.
In terms of volume, annual capacity will reach 100,000 shells in the second year of production, later rising to 200,000 a year.
Artillery is a vital capability of land warfare. The war in Ukraine shows how immense the need for ammunition is. The Bundeswehr’s depots are empty; replenishing its stocks will cost an estimated €40 billion. Enormous consumption of ammunition in Ukraine is exacerbating current shortages. The western world’s available production capacity is not structured to meet demand on this scale. Like other countries, Germany therefore plans to procure large amounts of ammunition over an extended period.
Rheinmetall is a leading defence contractor and one of the world’s largest producers of ammunition. In recent months, the Group has already been investing substantially in its production network. By 2025, Rheinmetall aimed to produce up to 700,000 rounds of artillery ammunition at its plants in Germany, Spain, South Africa, Australia and Hungary, as well as 10,000 tonnes of powder.
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