Karina Bovsunovska17:46, 05/03/24

According to him, the ammunition currently manufactured by Rheinmetall is immediately sent to Ukraine.

The general director of the Rheinmetall defense concern,  Armin Papperger , called for an increase in military spending so that Germany could defend itself in case of war. He said this in an interview with the Wirtschaftspublizistische Vereinigung,  Süddeutsche Zeitung reports .

“The Western world is not ready for a conventional war,” he said.

According to him, China and Russia are arming themselves with great intensity. Therefore, Germany’s defense budget should be increased by 30 billion euros annually from the current 52 billion euros. 

“If these 30 billion are not invested in Germany, the turnaround will not succeed,” Papperger warned.

The publication recalled that in 2022, German Chancellor Olaf Scholz called for a “turning point” after the Russian Federation attacked Ukraine. Then the federal government created a special fund of 100 billion euros in order to strengthen the defense capability and compensate the deficit of the Bundeswehr. 

The head of Germany’s largest arms maker noted that since the end of the Cold War, the country has slashed defense spending, leaving military equipment obsolete and ammunition warehouses empty. He added that too much had been saved.

Journalists noted that the Reinmetall company took advantage of the 100 billion dollar special fund and received orders for armored vehicles and other military equipment. According to Papperger, the special fund will be exhausted by 2026, which is why it is very important to increase the regular defense budget. If this does not happen, then the “turn will fail”. 

“Then it will just be a flash in the pan, and we will no longer be able to continue in the same spirit,” the entrepreneur warned.

He added that the Bundeswehr still lacks the necessary weapons, citing artillery ammunition as an example. 

“Ammunition that we produce is now being shipped to Ukraine,” Papperger said. 

The general director of the company emphasized that during the last two years, Germany replenished its warehouses with “practically nothing”. He estimated that it would take 10 years of production to replenish the stockpile of artillery shells, making it clear that the federal government must also provide the necessary funding. 

At the same time, Germany is not the only country in Europe that is not prepared for possible threats.

“Whether it’s Italy, whether it’s Spain, whether it’s France – all the warehouses are empty, for all the usual types of ammunition,” Papperger assured.

What is known about the defense company Rheinmetall

It is noted that the headquarters of the company is located in Düsseldorf. The largest plant is located in Unterluss, in Lower Saxony. The company also has various subsidiaries outside Germany. 

“The group has around 28,000 full-time employees and manufactures tanks, ammunition, artillery, anti-aircraft guns and military trucks. Last year, the company’s turnover increased by 12 percent to around 7.2 billion euros and net profit by nine percent to 0, 6 billion euros. Order books are full and management wants to accelerate growth,” the publication added.

Also, since the beginning of the full-scale war in Ukraine, the value of the company has increased approximately five times, now its price is about 22 billion euros. However, Papperger noted that this is not the end. 

“I believe that we can bring it to 50 billion,” he emphasized. 

In turn, the entrepreneur is not only the chairman of Rheinmetall, but also the president of the Federal Association of the German Security and Defense Industry (BDSV). Thus, he is, so to speak, the chief manager of armaments in Germany.

(C)UNIAN 2024