Armin Pappengers, 62, white hair and intense gaze, is one of the few Germans who can rejoice in the arrival of Donald Trump at the White House. For two reasons: the first is that now the Europeans will have to defend themselves on their own and therefore buy more weapons. The second is that the German manager no longer risks being killed. Yes, because Papperger, CEO of the Rheinmetall weapons manufacturer, had to be murdered by the Russians: the conspiracy to eliminate him and other defense industry managers throughout Europe who supported Ukraine, was discovered and foiled last year by the American and German secret services. The plan to kill the head of the Rheinmetall was the most mature, but now it is unlikely that the manager ends up again in the sights of a killer: after the approach between Trump and Vladimir Putin the peace seems close and at the Kremlin it is better to lower the tension. So Papperger can focus on the successes of the company he has been guided for two years. And what happened: the company will announce in the next few days that it has closed 2024 with a record turnover of around 10 billion euros, after sales have increased by 36 percent from January to September last year. On the stock exchange, the Rheinmetall title made sparks with a gallop of over 120 percent in a year, beating the actions of the other great protagonist of the European defense, the Italian Leonardo, who earned about 75 percent in the same period.
Not only that. The German group plans to reach 20 billion of revenues in 2027thanks to the increase in the expenditure for the defense by the European Union and NATO. But also following an important agreement signed with Leonardo and the acquisition in the United States of Loc Performance, specialized in components for military vehicles. In twentieth place in the world ranking of Defense News, Düsseldorf’s Rheinmetall is the largest manufacturer of ammunition in Europe. In particular, he holds out a bullet strongly requested by the Ukrainian army: the 155 millimeter one for artillery, essential to support field operations given the intensity of the fighting and the wide use of cannons and operators. So much so that the EU has allocated two billion euros through the European Peace Facility to provide Kiev with precious 155 mm bullets and other ammunition. And since 2022 the German company has accumulated orders for about six billion euros from Ukraine.
But the ammunition is not the main business of Rheinmetall: The Vehicle Systems division, specialized in military vehicles with wheels and tracked, recorded in the first nine months of 2024 sales for 2.5 billion with a leap of 52 percent. The German multinational is one of the manufacturers of the famous Leopard 2 tank, as well as other dozens of combat vehicles, military trucks, armored vehicles for transport troops, air defense systems, armored for electronic war. The company also has a consolidated presence in Italy where it produces anti -aircraft defense systems, surveillance radar and target chasing, as well as ammunition. A link with our country that strengthened last year with a joint venture between Leonardo and Rheinmetall: the goal is to form a new, strong nucleus for the development and production of military combat vehicles in Europe. With over 31 thousand employees and locations in 171 countries, Rheinmetall has reached these dimensions exceeding its history some crucial obstacles.
Founded in 1889 with the name of Rheinische Metallwaaren – Und Maschinenfabrik, At the beginning, the company focuses on artillery bullets and other military equipment, soon becoming a provider of the German army during the First World War. Then comes the Treaty of Versailles, and Rheinmetall is forced to diversify production, also dedicating itself to civil sectors such as locomotives and agricultural machines. With the rise of Nazism and the rearmament of Germany in the 1930s, the company returns to focus on the production of armaments, playing an important role in the preparation of the country to the Second World War. After the conflict with the defeat of the Germans, the Rheinmetall is dismantled but then reconstructed to supply the Bundeswehr, the army of West Germany, and other NATO countries with military equipment. Starting from the seventies, the group begins diversification, entering new sectors such as electronics, mechanical engineering and the automotive industry. Today the company is a fundamental partner of NATO and having orders for 38 billion wallets look to the future with confidence. An optimism shared by UBS analysts, who on Monday 24 February raised the rating of the Rheinmetall shares from “Neutral” to “Buy” (buy), increasing the price target at 1,208 euros from the previous 924 euros. And Armin Papperger can smile.
