German arms manufacturer Rheinmetall wants to produce air defense systems and tanks in Ukraine

The largest German arms company Rheinmetall plans to be able to produce tanks, anti-aircraft systems, and ammunition in Ukraine in the future.

The German business publication Handelsblatt reports that according to the general director of the concern, Armin Papperger's plans for producing weapons directly in Ukraine are taking real shape.

He intends to sign contracts on cooperation and to create joint ventures with Ukrainian companies in the coming weeks, Papperger said on Tuesday in Düsseldorf during an online meeting of shareholders. These are joint ventures for producing automotive systems, air defense systems, and ammunition.

"This way, we give Ukraine the opportunity to defend itself in the medium and long term," the publication quotes the head of the concern.

Investments in new factories will come from the Ukrainian state. As a specific example, Papperger cited the plan announced a couple of months ago to produce main battle tanks of the Panther type in Ukraine.

The manager assessed the preliminary negotiations with Kyiv for the tank project as promising. He is convinced that the demand from Ukraine will be very high in the next ten years. According to Rheinmetall's plans, this could be up to 400 units annually.

Rheinmetall is on the path to a substantial increase in productivity, which is also related to the rise in global demand for weapons against the background of the war in Ukraine. Papperger expects 2023 "to be the best year in the company's history regarding order intake."

The director general said the group has vast tank ammunition and artillery capacities. Currently, 150,000 tank ammunition and 600,000 artillery shells are produced.