German defense contractor Rheinmetall is exploring the possibility of converting two of its civilian factories, which currently produce automotive parts, into ammunition manufacturing plants.
The company is considering repurposing its facilities in Berlin and Neuss (near Düsseldorf) to focus on ammunition production. These plants are currently part of Rheinmetall’s Power Systems division, which specializes in automotive and energy products, but have been impacted by the ongoing crisis in the automotive industry.
Sales within this division have seen a slight decline over the first three quarters of 2024, while the “military” sector saw a notable 64.3% increase during the same period.
In response to inquiries, Rheinmetall confirmed that it is weighing the option of converting the plants, although no final decision has been made yet.
“As for military products, Rheinmetall is currently exploring all available options to increase production, including ammunition… However, no final decisions have been made regarding this initiative,” the company stated.
CEO Armin Papperger highlighted the company’s remarkable growth in recent years, driven by shifting geopolitical dynamics, and anticipates continued expansion, spurred in part by policies under the Trump administration.
“I think this means that our company needs to grow even faster than we initially planned,” Papperger said.
