Rheinmetall, Germany’s main arms producer, has introduced that it nearly doubled its working revenue within the first half of 2024, and now has a document backlog of orders value greater than $50 billion. The corporate stated the Ukraine battle had “considerably improved enterprise efficiency.”
In an announcement on Thursday, the Dusseldorf-based agency stated gross sales within the first half of this yr had elevated by a 3rd to €3.8 billion ($4.14 billion), whereas working revenue elevated by 91% to €404 million ($440 million). The corporate’s order e book is now value a document €48.6 billion ($53 billion), the assertion boasted.
“Enterprise with the armed forces of Germany and associate nations within the EU and NATO together with help to Ukraine proceed to considerably enhance enterprise efficiency,” it learn.
Earlier than the battle in Ukraine started, gross sales of components for the civilian automotive trade accounted for greater than a 3rd of Rheinmetall’s enterprise. Nonetheless, the corporate’s civilian gross sales have fallen, whereas demand for its navy merchandise – together with tanks, armored autos, artillery, and air-defense techniques – have exploded.
Rheinmetall is at present constructing a brand new plant in Decrease Saxony, which is predicted to supply round 100,000 artillery shells yearly from its second yr of operation onwards. In Could, the corporate stated it was aiming to construct 700,000 of those projectiles throughout all of its factories by subsequent yr.
This enhance in provide is unlikely to fulfill Ukraine’s demand. Earlier this yr, Ukrainian officers introduced that they would want 20,000 155mm shells per day to match the output of Russia’s weapons. Ukraine’s shell consumption, mixed with demand for a similar ammunition from Israel and rising power prices in Europe, has pushed the value of a single 155mm shell to between $5,000 and $10,000, Protection Information reported in June.
Final yr, Rheinmetall stated shell costs would probably rise additional because the Ukraine battle drags on.
Rheinmetall opened a tank upkeep hub in western Ukraine in June, and plans to construct additional ammunition and air-defense factories on Ukrainian soil. Russia has warned that it will contemplate these services “official targets,” and this threat of Russian strikes has reportedly scared Rheinmetall’s American rivals away from investing in Ukraine.
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