Rheinmetall is preparing a “unified defense center for Europe”: from shells to shipbuilding
10 September 2025 19:26
German defense company Rheinmetall AG has announced ambitious plans to become a “one-stop shop” for Europe’s defense needs. This was stated by the company’s CEO Armin Papperger, Bloomberg reports, "Komersant Ukrainian"
- The company is negotiating the acquisition of the shipbuilding company Naval Vessels Luerssen (Bremen).
- By the first quarter of 2026, Rheinmetall intends to sell its civilian divisions and focus exclusively on defense: land, sea, and air.
Armin Papperger, CEO of the concern, emphasized:
“We want to create control centers, develop missile systems, launchers, modeling systems. And we want to develop in this area.”
Shipbuilding business
The acquisition of Luerssen will be Rheinmetall’s first major step into warship construction. This is to complement the existing competencies in artillery, air defense, armored vehicles and drones.
Artillery shells and production plans
- Today, Europe produces about 2 million artillery shells per year. Rheinmetall wants to raise this figure to 3 million.
- The company recently opened Europe’s largest artillery ammunition plant.
Skyranger for Ukraine
- At DSEI, the company will sign a €500 million contract to supply Skyranger air defense systems to Ukraine.
- By the end of 2025, 3 to 5 such systems are expected to be delivered.
- Production capacity is planned to reach 200 systems per year.
ATACMS and Hellfire missiles
Rheinmetall, together with Lockheed Martin, is preparing to launch production of the American ATACMS and Hellfire missiles at its plant in Unterluss, Germany.
According to Papperger:
“In 15-16 months we will be ready to produce ATACMS in Europe.”
Geography of expansion
- Germany: a plant for the production of artillery shells, fuselages for the F-35, preparation for missile production.
- Bulgaria: two plants for the production of gunpowder, artillery shells and drones.
- Purchase of Hagedorn-NC (2025): production of nitrocellulose.
Possible consequences
- Formation of Rheinmetall as a dominant player in the European defense industry.
- Increased dependence of Ukraine on supplies from this company (ammunition, air defense, and in the future, missiles).
- For Europe, this is a chance to reduce its dependence on the United States in the defense sector, but also a risk of market concentration in one hand.
Rheinmetall is Germany’s largest arms manufacturer, which has expanded dramatically since the start of Russia’s full-scale war against Ukraine.
In 2022-2025, the company signed dozens of contracts with Germany, NATO countries, and Ukraine, including for the production of artillery shells and air defense systems.
The defense budget of the EU and Germany has grown at a record pace, which stimulates new investments by the concern.
