Since Russia’s invasion of Ukraine last year, the German arms manufacturer has seen its share price more than double.
March 20, 2023
German automotive and arms manufacturer, Rheinmetall, is set to join the DAX index of 40 leading shares on the Frankfurt Stock Exchange on Monday.
Since Russia’s invasion of Ukraine last year, the company has seen its share price more than double.
Headquartered in Düsseldorf in western Germany, Rheinmetall produces the cannon for the Leopard 2, a tank used by several European armies and to be delivered to Ukraine, and the Panzerhaubitze 2000, a long-range howitzer deployed by the Ukrainian military.
As European countries increase their military spending in response to the Russian invasion, Rheinmetall predicts strong growth in 2023.
CEO Armin Papperger commented: “We want to participate with our products in increasing budgets for military capacities.”
Now, on the DAX, Rheinmetall will be alongside industry giants such as Volkswagen and Siemens.
The inclusion of Rheinmetall in the index will result in the removal of dialysis specialist, Fresenius Medical Care.
Germany pushes ahead with new military investments
As Berlin and its NATO partners work to strengthen their defenses in response to the Russian threat, Chancellor Olaf Scholz has announced significant new military investments.
In a statement earlier this month, Scholz emphasized the need for the “ongoing production of important weapons, equipment, and ammunition” to ensure “peace and freedom in Europe.”
The AFP news agency reported that Rheinmetall and other weapons manufacturers are in discussions with the federal government and German military to address gaps in their stocks, which have been exacerbated by large deliveries of armaments to Ukraine.
Rheinmetall has been a strong supporter of Ukraine, and, as was reported here, wants to invest in a new tank production facility in Ukraine. And this, no less, to produce their newest tank; the Panther. Furthermore, Rheinmetall is doing what it can to hand over tanks to Ukraine asap. It even attempted to purchase nearly a hundred from (corrupt) Switzerland to hand over to Ukraine. Unless I’ve missed something, no other arms manufacturer in the world has been as zealous as this one to help Ukraine. This is noteworthy and deserves to be rewarded with prosperity for the company. I’m confident that their stocks are well worth the price and if anyone should be interested to purchase any, now is the time.
Germany alone has allotted 100 billion Euros Sondervermögen for its newest defense budget, which has hardly been touched so far. Rheinmetall will get a large portion of this money to produce new weapons. Moreover, if the Leopards prove to be the ruskie tank-killers as expected, this will further help the company’s image. I know that I’ve ranted about their PH 2000, but they’ve clearly learned their lessons, as every other arms manufacturer has learned them in this war.