by DUESSELDORF, Jan 29 (Reuters) – German arms-maker Rheinmetall is able to vastly boost the output of tank and artillery munitions to fulfill sturdy demand in Ukraine and the West, and will begin producing HIMARS a number of rocket launchers in Germany, CEO Armin Papperger informed Reuters.
He spoke days earlier than Germany’s defence business bosses are as a result of meet new defence minister Boris Pistorius for the primary time, although the precise date has but to be introduced.
With the assembly, Pistorius goals to kick off talks on velocity up weapons procurement and boost ammunitions provides in the long run after virtually a yr of arms donations to Ukraine has depleted the German army’s shares.
Rheinmetall (RHMG.DE) makes a spread of defence merchandise however might be most well-known for manufacturing the 120mm gun of the Leopard 2 tank.
“We can produce 240,000 rounds of tank ammunition (120mm) per yr, which is greater than the complete world wants,” Papperger mentioned in an interview with Reuters.
The capability for the production of 155mm artillery rounds will be ramped as much as 450,000 to 500,000 per yr, he added, which might make Rheinmetall the largest producer for each sorts of ammunition.
In 2022, Rheinmetall made some 60,000 to 70,000 rounds every of tank and artillery shells, in keeping with Papperger, who mentioned production might be boosted instantly.
Demand for these munitions has soared since Russia’s invasion of Ukraine final February, not solely as a result of their huge use on the battlefield but in addition as Western militaries backfill their very own shares, bracing for what they see as a heightened menace from Moscow.
Papperger mentioned a brand new production line for medium calibre ammunition, utilized by German-built Gepard anti-aircraft tanks in Ukraine for instance, would go stay by mid-year.
Germany has been making an attempt for months to search out new munitions for the Gepard that its personal army had decomissioned in 2010.
HIMARS PRODUCTION LINE IN GERMANY?
At the identical time, Rheinmetall is in talks with Lockheed Martin(LMT.N), the U.S. firm manufacturing the HIMARS (High Mobility Artillery Rocket System) a number of rocket launchers in heavy use with Ukrainian troops, Papperger mentioned.
“At the Munich Security Conference, we goal to strike an settlement with Lockheed Martin to kick off a HIMARS production (in Germany),” he mentioned, referring to an annual gathering of political and defence leaders in mid-February.
“We have the expertise for the production of the warheads in addition to for the rocket motors – and now we have the vehicles to mount the launchers upon,” Papperger mentioned, including a deal could immediate investments of a number of hundred million euros of which Rheinmetall would finance a significant half.
Rheinmetall additionally eyes the operation of a brand new powder plant, probably in the jap German state of Saxony, however the funding of 700 to 800 million euros must be footed by the federal government in Berlin, he mentioned.
“The state has to take a position, and we contribute our technological know-how. In return, the state will get a share of the plant and the earnings it makes,” Papperger instructed.
“This is an funding that’s not possible for the business by itself. It is an funding into nationwide safety, and subsequently we’d like the federal state,” he mentioned.
The plant is required as shortages in the production of particular powders might grow to be a bottleneck, hampering efforts to boost the output of tank and artillery shells, he famous.
A number of days earlier than the assembly with the brand new defence minister, Papperger pushed for a rise of Germany’s defence price range.
“The 51 billion euros in the defence price range is not going to suffice to buy every little thing that’s wanted. And the cash in the 100 billion euro particular funds has already been earmarked – and partially been eaten up by inflation,” he mentioned.
“100 billion euros feels like an enormous sum however we might really need a 300 billion euro bundle to order every little thing that is wanted,” he added, noting that the 100 billion particular fund doesn’t embrace ammunitions purchases.
Even earlier than Russia’s invasion of Ukraine, Germany was 20 billion euros in need of reaching NATO’s goal for ammunitions stockpiling, in keeping with a defence supply.
To plug the munitions hole alone, Papperger estimates the Bundeswehr (German armed forces) would wish to take a position three to 4 billion euros per yr.
In the talks with the minister, the defence boss hopes for a flip in the direction of a extra sustainable long-term planning in German procurement, stretching a number of years into the longer term, because the business wanted to have the ability to make its preparations in time.
“What we’re doing in the mean time is definitely battle stocking: Last yr, we prefinanced 600 to 700 million euros for items,” Papperger mentioned. “We should transfer away from this disaster administration – it’s disaster administration if you purchase (uncooked supplies and different issues) with out having a contract – and get into a daily routine.”
Reporting by Sabine Siebold, Editing by Angus MacSwan
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