EU Nations Boost Rheinmetall Orders to 130 Billion Euros Amid Russian Threats
EU nations are grappling to align on rearmament due to recent Russian airspace incursions. This has led to a surge in orders for German defense contractor Rheinmetall, with the company's shares soaring.
Rheinmetall has received orders worth up to 130 billion euros, primarily from the German Bundeswehr and NATO allies. This includes Germany's special defense fund, as well as international partners like Australia and countries in Western Asia. The company's CEO, Armin Papperger, announced these orders, which will necessitate significant investment in new personnel and recently acquired marine shipyards from NVL.
Rheinmetall's products are in high demand for the planned drone wall, a key part of the EU's rearmament plans discussed at a summit in Copenhagen. The EU Commission proposed a roadmap for rearmament, including the construction of a drone wall on the eastern flank using advanced technology. Despite the recent record high of over 2,000 euros, Rheinmetall's share is currently taking a breather after gaining 224 percent in nine months.
The surge in orders for Rheinmetall reflects the EU's urgent need to bolster its defenses in the face of growing security threats. With major projects in the pipeline, the company's defense value is expected to rise in the long term.
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