19 December 2024
Attila Kálmán
Nico Schmidt
Arming the world: Rheinmetall’s secretive ammunition factory program
Spoovio
Arming the world: Rheinmetall’s secretive ammunition factory program
19 December 2024Germany’s leading defence company is a major supplier to Ukraine and ‘friendly’ Nato countries. But Rheinmetall also has a parallel business, free from German export rules, selling machinery and factories to places rarely named in public. Investigate Europe went on the trail of the arms giant’s little-known global operations.
In December 2024, trucks are bustling through the green Himalayan foothills in northern India. Their loading areas are full to bursting with mud from bulldozers, which level the hilly terrain. They leave a dusty area so large that it can be seen with the naked eye from space.
There, a seven-hour drive northwest of Delhi in the province of Himachal Pradesh, a medical device park is being built and next to it the Indian defence contractor SMPP is constructing one of the country's largest munitions plants – with prominent support. The site is one of the latest signs of the German arms company Rheinmetall's global expansion, which often takes place away from the limelight – and for good reason.
Two years earlier, in September 2022, a small delegation from the Rheinmetall Group arrived in India. Their goal: to finalise a deal with the provincial government together with SMPP. The trip was not supposed to make any big headlines. Only a few local newspapers took note of the guests. Along with their reports, they printed photos. They showed a cheerful Rheinmetall manager wearing a traditional hat, and presenting a bouquet of flowers to the government representative. The mission was a success. "These companies are going to set up a plant in Nalagarh for defence manufacturing," read a brief press release from the Himachal Pradesh government.
The framework agreement between the Rheinmetall Group and SMPP for the construction of the ammunition plant came into force last year. This October, SMPP entered into two further agreements with a Rheinmetall subsidiary for the "design, installation and commissioning" of facilities for testing and manufacturing ammunition at the site. This is stated in a document that SMPP recently submitted to the Securities and Exchange Board of India. In it, the company also states that a contract has already been signed with a "friendly foreign country" for the supply of 155-mm ammunition.
There, a seven-hour drive northwest of Delhi in the province of Himachal Pradesh, a medical device park is being built and next to it the Indian defence contractor SMPP is constructing one of the country's largest munitions plants – with prominent support. The site is one of the latest signs of the German arms company Rheinmetall's global expansion, which often takes place away from the limelight – and for good reason.
Two years earlier, in September 2022, a small delegation from the Rheinmetall Group arrived in India. Their goal: to finalise a deal with the provincial government together with SMPP. The trip was not supposed to make any big headlines. Only a few local newspapers took note of the guests. Along with their reports, they printed photos. They showed a cheerful Rheinmetall manager wearing a traditional hat, and presenting a bouquet of flowers to the government representative. The mission was a success. "These companies are going to set up a plant in Nalagarh for defence manufacturing," read a brief press release from the Himachal Pradesh government.
The framework agreement between the Rheinmetall Group and SMPP for the construction of the ammunition plant came into force last year. This October, SMPP entered into two further agreements with a Rheinmetall subsidiary for the "design, installation and commissioning" of facilities for testing and manufacturing ammunition at the site. This is stated in a document that SMPP recently submitted to the Securities and Exchange Board of India. In it, the company also states that a contract has already been signed with a "friendly foreign country" for the supply of 155-mm ammunition.
A sign at the location of the planned SMMP and Rheinmetall ammunition factory, December 2024. Credit: Neel Madhav
The framework agreement between the Rheinmetall Group and SMPP for the ammunition plant came into force last year. Credit: Neel Madhav
Press releases from the Rheinmetall Group make no mention of the Indian deal. Instead, in those weeks the company reported that it delivered new mobile air defence units to "renowned Nato customer" Denmark and is participating in a debt-for-debt swap in favour of Ukraine. The group confidently advertises itself with the motto ‘Taking Responsibility in a Changing World’.
The little-known deal with the Indian partner is not an isolated case. It is a part of a firmly calculated “internationalisation strategy”, a vision that Rheinmetall CEO Armin Papperger has implemented over the past decade. Over the last year, Investigate Europe spoke to dozens of insiders, former high-ranking Rheinmetall employees, analysts and politicians from affected countries. In addition, thousands of pages of public and confidential documents were obtained. Taken together, these conversations and documents paint a picture of a discreet export business where certain Rheinmetall customers stay in the shadows. Among the known clients are states that are linked to extensive human rights abuses and that supply ammunition to Russia.
Without the German government having the opportunity to take action against this, Rheinmetall is skilfully circumventing German arms export regulations thanks to a South African subsidiary.
The little-known deal with the Indian partner is not an isolated case. It is a part of a firmly calculated “internationalisation strategy”, a vision that Rheinmetall CEO Armin Papperger has implemented over the past decade. Over the last year, Investigate Europe spoke to dozens of insiders, former high-ranking Rheinmetall employees, analysts and politicians from affected countries. In addition, thousands of pages of public and confidential documents were obtained. Taken together, these conversations and documents paint a picture of a discreet export business where certain Rheinmetall customers stay in the shadows. Among the known clients are states that are linked to extensive human rights abuses and that supply ammunition to Russia.
Without the German government having the opportunity to take action against this, Rheinmetall is skilfully circumventing German arms export regulations thanks to a South African subsidiary.
Rheinmetall markets itself with the motto: Taking Responsibility in a Changing World’. Shutterstock
It started in 2008, when Rheinmetall acquired a majority stake in the South African Denel Munitions. In an interview with Investigate Europe, a former manager of Rheinmetall Denel Munition (RDM) highlighted the strategic importance of the joint venture. “Rheinmetall was investing in a financially bankrupt company, but technically, Denel Munitions had tremendous potential,” he says. “Now Rheinmetall had an opportunity to have the capabilities in-house. These technical capabilities could be used for export around the world.” And the group did just that. In the following years, it supplied customers worldwide with ammunition production equipment from its plants near Cape Town and Johannesburg.
The extent of the ammunition factory exports from South Africa can only be estimated. The group refused to provide any information when asked by Investigate Europe. In 2017, however, a leading Rheinmetall manager said on the occasion of the sale of a plant for filling ammunition casings, “It is one of 39 similar facilities RDM has produced worldwide.”
The recipients of these factories can produce projectiles independently and export them without any control of the final destination of the ammunition. Among them are numerous non-Nato countries. According to previous media reports and investigations, Rheinmetall has reportedly exported ammunition production machinery to Egypt, the United Arab Emirates and Saudi Arabia.
Another client, which has remained under the radar is Indonesia. Although it seems that no major deal was struck with the Indonesian state arms manufacturer – despite several attempts to do so – Investigate Europe found documents showing that RDM had exported machinery specifically for the production of ammunition.
The extent of the ammunition factory exports from South Africa can only be estimated. The group refused to provide any information when asked by Investigate Europe. In 2017, however, a leading Rheinmetall manager said on the occasion of the sale of a plant for filling ammunition casings, “It is one of 39 similar facilities RDM has produced worldwide.”
The recipients of these factories can produce projectiles independently and export them without any control of the final destination of the ammunition. Among them are numerous non-Nato countries. According to previous media reports and investigations, Rheinmetall has reportedly exported ammunition production machinery to Egypt, the United Arab Emirates and Saudi Arabia.
Another client, which has remained under the radar is Indonesia. Although it seems that no major deal was struck with the Indonesian state arms manufacturer – despite several attempts to do so – Investigate Europe found documents showing that RDM had exported machinery specifically for the production of ammunition.
“The willingness to supply ammunition even to warring nations and states that blatantly disregard human rights, is essential prerequisites for [Rheinmetall's] economic success.”
— Otfried Nassauer
Two independent sources with knowledge of proceedings told Investigate Europe that RDM had exported arms factories to two Latin American countries. We sent questions to the governments and companies in both countries. The only response was from a state-owned defence company in Latin America, which denied buying any machinery. Nonetheless, Investigate Europe found in trade data that RDM supplied said company with two large shipments of detonators, products typically needed to make ammunition.
When asked, a Rheinmetall spokesperson stated that his company was "legally obliged" to maintain "strict confidentiality". Rheinmetall could "not provide any further information on possible customer relationships or the associated country-specific sales."
Otfried Nassauer, a late German peace campaigner who spent years researching Rheinmetall's practices, noted back in 2016 that “the willingness of the group's management to supply ammunition even to warring nations, and states that blatantly disregard human rights, is an essential prerequisite for the economic success of Rheinmetall's ammunition business."
When asked, a Rheinmetall spokesperson stated that his company was "legally obliged" to maintain "strict confidentiality". Rheinmetall could "not provide any further information on possible customer relationships or the associated country-specific sales."
Otfried Nassauer, a late German peace campaigner who spent years researching Rheinmetall's practices, noted back in 2016 that “the willingness of the group's management to supply ammunition even to warring nations, and states that blatantly disregard human rights, is an essential prerequisite for the economic success of Rheinmetall's ammunition business."
Rheinmetall's global subsidaries in its weapons and munitions business, and country locations of machinery exports from RDM. Spoovio / Georgina Choleva
The start of production is awaited in India. Rheinmetall's partner, SMPP, has so far mainly been known for producing equipment for the Indian military. Now it also wants to strengthen its ammunition production business. In May this year, company president Anis Oberoi rejoiced: “Our new plant is almost ready for manufacturing.” The factory, he said, could produce ammunition of all types, “which are facing severe shortages amid various wars and conflicts.”
At Ammo India, the Indian munitions trade fair, SMPP advertised as early as autumn 2022 with the slogan ‘Make in India - Make for The World’ and presented the child-sized projectiles that it plans to produce in the future. These include 155mm artillery shells, which are particularly sought after by those fighting in the war in Ukraine. SMPP did not respond to questions from Investigate Europe.
For Rheinmetall it is also a lucrative arrangement. When exporting factories to India or elsewhere, RDM includes an exclusivity clause obliging recipients to buy Rheinmetall products, which “lock the customers into their product range”, the former manager in South Africa explained. The group did not respond to a question about the existence of an exclusivity clause.
At Ammo India, the Indian munitions trade fair, SMPP advertised as early as autumn 2022 with the slogan ‘Make in India - Make for The World’ and presented the child-sized projectiles that it plans to produce in the future. These include 155mm artillery shells, which are particularly sought after by those fighting in the war in Ukraine. SMPP did not respond to questions from Investigate Europe.
For Rheinmetall it is also a lucrative arrangement. When exporting factories to India or elsewhere, RDM includes an exclusivity clause obliging recipients to buy Rheinmetall products, which “lock the customers into their product range”, the former manager in South Africa explained. The group did not respond to a question about the existence of an exclusivity clause.
Rheinmetall executives pose for a photograph with SMPP and local officials in India in September 2022.Department of Public Relations, Himachal Pradesh
Even though Rheinmetall, a German company, owns the majority in RDM, the control of German and European laws over where one day the ammunition produced by SMPP will end up, is limited. The South African governments could influence the decision over potential exports of munition, when the intellectual property is held by RDM. Significantly, India has not signed the International Arms Trade Treaty, obliging states not to supply ammunition to countries that violate human rights or commit war crimes. India recently exported weapons worth $4 billion to Russia, according to Indian news site Firstpost.
“India is striving to become a major arms exporter and maintains close relations with Russia, for example,” says Frank Slijper, who researches the arms trade for the Dutch peace organisation Pax. "Rheinmetall should therefore urgently clarify how it ensures that it is not complicit in supplying ammunition not only to Ukraine, but also to Russia.”
A Rheinmetall spokesperson said that every delivery of defence equipment is subject to “strict national export regulations” and ”end-use statements and their control by the relevant authorities”.
“India is striving to become a major arms exporter and maintains close relations with Russia, for example,” says Frank Slijper, who researches the arms trade for the Dutch peace organisation Pax. "Rheinmetall should therefore urgently clarify how it ensures that it is not complicit in supplying ammunition not only to Ukraine, but also to Russia.”
A Rheinmetall spokesperson said that every delivery of defence equipment is subject to “strict national export regulations” and ”end-use statements and their control by the relevant authorities”.
.jpg&w=3840&q=75)
Inside the plant engineering complex at an RDM facility in South Africa. Credit: Rheinmetall
The company sells ammunitions around the world, including the 155-mm artillery shells. Credit: Rheinmetall
Not even the exports of Rheinmetall’s production machines from South Africa are controlled by European authorities. In Germany, the Foreign Trade and Payment Act regulates that all goods used for the development or production of ammunition are subject to approval by the Federal Office for Economic Affairs and Export Control (BAFA). However, this law only applies to Rheinmetall entities based in Germany. Entities abroad are not concerned, as long as they hold the intellectual property. This apparently is the case in South Africa, as the former RDM manager confirmed. In plain language: RDM exports from South Africa are not regulated by German law.
This legal loophole could easily be closed, criticises Alexander Lurz, who has been working on arms exports for Greenpeace Germany for years. “The coalition government had promised an arms export control law that could have included a reservation of approval for takeovers, joint ventures and investments abroad,” Lurz said in an interview with Investigate Europe. After the Russian attack on Ukraine, this “fell victim to the new cosy relationship with the arms industry.”
This legal-blindspot has seemingly helped shape the way Rheinmetall expanded its business across the globe, a strategy engineered in large part by one individual.
Armin Papperger has worked for Rheinmetall his whole career. But the company the now 61-year-old walked through the door of in 1990 with a fresh engineering degree was completely different to the one he has developed as CEO from his Düsseldorf office since 2013.
Rheinmetall AG, 135 years old this year, was founded to supply ammunition to the German Empire. Not surprisingly, the two world wars were the most successful periods in the company's history. After 1945, weapons production was banned for German companies. But when in 1956 a new defence technology production programme was launched, Rheinmetall started producing machine guns, automatic cannons and ammunition again.
This legal loophole could easily be closed, criticises Alexander Lurz, who has been working on arms exports for Greenpeace Germany for years. “The coalition government had promised an arms export control law that could have included a reservation of approval for takeovers, joint ventures and investments abroad,” Lurz said in an interview with Investigate Europe. After the Russian attack on Ukraine, this “fell victim to the new cosy relationship with the arms industry.”
This legal-blindspot has seemingly helped shape the way Rheinmetall expanded its business across the globe, a strategy engineered in large part by one individual.
Armin Papperger has worked for Rheinmetall his whole career. But the company the now 61-year-old walked through the door of in 1990 with a fresh engineering degree was completely different to the one he has developed as CEO from his Düsseldorf office since 2013.
Rheinmetall AG, 135 years old this year, was founded to supply ammunition to the German Empire. Not surprisingly, the two world wars were the most successful periods in the company's history. After 1945, weapons production was banned for German companies. But when in 1956 a new defence technology production programme was launched, Rheinmetall started producing machine guns, automatic cannons and ammunition again.
“We see particular potential in markets outside Europe, such as in the Middle East and North Africa region, Asia and Australia.”
— Rheinmetall
By the time Armin Papperger joined, the company was made up of two branches: automotive and defence. Papperger joined the latter and took over as head of the Weapon and Munitions business in 2007. A year later Rheinmetall made the decisive purchase of South African state-owned company Denel Munitions. Papperger himself rarely appears in connection with the company. However, behind the scenes the subsidiary became a central cog in Papperger’s plan to attract new clients beyond Europe and Nato.
In 2014, Papperger outlined his strategy for the company when presenting the annual report to shareholders. “We see particular potential in markets outside Europe, such as in the Middle East and North Africa region, Asia and Australia”, the report said. In the following years Rheinmetall expanded its business to among others Qatar, Saudi Arabia and Australia. By 2020, a quarter of Rheinmetall’s weapons and ammunition sales were in 'Asia and the Near East’.
In 2014, Papperger outlined his strategy for the company when presenting the annual report to shareholders. “We see particular potential in markets outside Europe, such as in the Middle East and North Africa region, Asia and Australia”, the report said. In the following years Rheinmetall expanded its business to among others Qatar, Saudi Arabia and Australia. By 2020, a quarter of Rheinmetall’s weapons and ammunition sales were in 'Asia and the Near East’.
A slide from a 2014 presentation given to Rheinmetall shareholders.
For the shareholders, Papperger’s strategy was a success. When he took office in 2013, Rheinmetall's share price was around €45. By the end of 2021, the price had risen to around €83. This increase is largely due to the successful arms and ammunition business, which, shortly before the Russian attack on Ukraine, accounted for around 40 per cent of Rheinmetall's total operating profit.
Since the start of the Russian war of aggression against Ukraine in spring 2022, the value of Rheinmetall shares has multiplied. In March 2023, the company joined the DAX Index, which tracks Germany’s 40 largest companies on the Frankfurt Stock Exchange. At the beginning of December this year, the share price was more than €650. The public image of the defence industry and the company too has changed. Since this summer, Rheinmetall has been a "Champion Partner" of Bundesliga football club Borussia Dortmund.
Since the start of the Russian war of aggression against Ukraine in spring 2022, the value of Rheinmetall shares has multiplied. In March 2023, the company joined the DAX Index, which tracks Germany’s 40 largest companies on the Frankfurt Stock Exchange. At the beginning of December this year, the share price was more than €650. The public image of the defence industry and the company too has changed. Since this summer, Rheinmetall has been a "Champion Partner" of Bundesliga football club Borussia Dortmund.
Rheinmetall's share price and profits have risen sharply over the past decade.Spoovio / Georgina Choleva
But this success has another side to it. Campaigners have repeatedly raised concerns about consequences the company would rather remain silent about. Otfried Nassauer, the late German peace researcher, concluded in 2016 that among its global customers were countries “at war as well as those in crisis areas”. According to him, the group also supplied states “where the ‘security forces’ keep dictatorships and authoritarian governments in power."
Shortly after, journalists documented how Saudi Arabia dropped bombs on civilian targets in Yemen which were manufactured at Rheinmetall’s plant on the Italian island of Sardinia. At the time, Rheinmetall said its subsidiaries comply with the “strict legal framework” in their countries, adding: “For contractual reasons, we are not allowed to comment on customer relationships.”
RDM, the South African subsidiary, is also accused of supplying nations with questionable reputations. Critics argue that this is partly due to poorly enforced regulations. For years, Andrew Feinstein, a former member of the South African Parliament, has been a vocal critic of the country's arms exports. "I think there's so little control,” he says, “moral factors are virtually irrelevant.”
Shortly after, journalists documented how Saudi Arabia dropped bombs on civilian targets in Yemen which were manufactured at Rheinmetall’s plant on the Italian island of Sardinia. At the time, Rheinmetall said its subsidiaries comply with the “strict legal framework” in their countries, adding: “For contractual reasons, we are not allowed to comment on customer relationships.”
RDM, the South African subsidiary, is also accused of supplying nations with questionable reputations. Critics argue that this is partly due to poorly enforced regulations. For years, Andrew Feinstein, a former member of the South African Parliament, has been a vocal critic of the country's arms exports. "I think there's so little control,” he says, “moral factors are virtually irrelevant.”
“If a country was under UN embargo, South Africa would not export there but every other country was fine.”
— A former Rheinmetall manager
In his conversation with Investigate Europe, the former RDM manager admitted that export rules were rarely a concern for the company. “If a country was under UN embargo, South Africa would not export there but every other country was fine.”
And sometimes the South African government did not even know where RDM sent its products. Despite the state-owned Denel still holding 49 per cent, in 2016 RDM delivered a factory to Saudi Arabia seemingly without getting approval from its co-owner. When asked by parliamentarians, the Minister of Public Enterprises had to admit that the government had no say in the deal. Nor were they informed about where the Saudi-produced ammunition would end up. The minister simply said Denel was “not privy to the information”.
And sometimes the South African government did not even know where RDM sent its products. Despite the state-owned Denel still holding 49 per cent, in 2016 RDM delivered a factory to Saudi Arabia seemingly without getting approval from its co-owner. When asked by parliamentarians, the Minister of Public Enterprises had to admit that the government had no say in the deal. Nor were they informed about where the Saudi-produced ammunition would end up. The minister simply said Denel was “not privy to the information”.
In 2016, Saudi Military Industries Corporation opened a weapons factory in Al-Kharj, Saudi Arabia - built with the help of RDM.Google Earth
Another example of Rheinmetall not hesitating to do business with states accused of violating human rights was seen in Indonesia. There, RDM, together with the state-owned company PT Pindad, attempted to establish a munitions factory. In 2014, then PT Pindad CEO Sudirman Said wanted to cut costs. In order to avoid the shipping costs of importing explosives, he wanted to produce them domestically, Said recalled in a conversation with Investigate Europe.
The same year, the then RDM CEO travelled to Jakarta. At the luxury Shangri-La hotel, together with representatives for Said, they signed a memorandum of understanding to construct one of the largest ammunition production facilities in Southeast Asia.
In 2016, another memorandum of understanding was signed between Pindad and another South African Rheinmetall subsidiary to produce large-calibre munitions. However, both deals fell through, according to a former senior Pindad official, who spoke to Investigate Europe on the condition of anonymity. Indonesian law at the time made a proposed joint venture impossible. In 2020 the rules changed, allowing private companies to produce such weaponry.
The same year, the then RDM CEO travelled to Jakarta. At the luxury Shangri-La hotel, together with representatives for Said, they signed a memorandum of understanding to construct one of the largest ammunition production facilities in Southeast Asia.
In 2016, another memorandum of understanding was signed between Pindad and another South African Rheinmetall subsidiary to produce large-calibre munitions. However, both deals fell through, according to a former senior Pindad official, who spoke to Investigate Europe on the condition of anonymity. Indonesian law at the time made a proposed joint venture impossible. In 2020 the rules changed, allowing private companies to produce such weaponry.
A PT Pindad facility in Turen, Indonesia.Google Earth
Still, RDM continued to do business with PT Pindad. As trade documents show, in 2019 alone the company delivered multiple products for the manufacturing of ammunition. Among them, propellant powder, 40mm-calibre ammunition components, fuses and production machinery. PT Pindad did not respond to Investigate Europe’s request for comment. Rheinmetall also did not comment on the transactions.
The situation is different for the ammunition factories the group is building in Europe and proudly presenting to the public, these factories are supposed to one day produce ammunition that will make Europe defensible.
In hardly any other European country are Rheinmetall and the government as closely entwined as in Hungary. CEO Armin Papperger is a member of the advisory board of 4iG, a government-linked infotech company. And in April 2023, Rheinmetall added former state secretary Gáspár Maróth to its management. After spending years negotiating for the Orbán government with the defence industry, he was now looking at expanding the company's presence in Hungary.
The situation is different for the ammunition factories the group is building in Europe and proudly presenting to the public, these factories are supposed to one day produce ammunition that will make Europe defensible.
In hardly any other European country are Rheinmetall and the government as closely entwined as in Hungary. CEO Armin Papperger is a member of the advisory board of 4iG, a government-linked infotech company. And in April 2023, Rheinmetall added former state secretary Gáspár Maróth to its management. After spending years negotiating for the Orbán government with the defence industry, he was now looking at expanding the company's presence in Hungary.
Armin Papperger (second right) in a rare public appearance with executives in South Africa at the opening of a RDM solar park in 2023.Rheinmetall
The plans are ambitious. Rheinmetall has already established a factory in Hungary to produce Lynx tanks as well as battle vehicles, a radar and missile factory. It is also building a factory to produce explosives and ammunition. RDM won the contract worth €192 million to build this plant on a 150-hectare plot of land. Once finished, it will produce medium and large calibre ammunition.
But this one new factory is apparently not enough to meet the new huge demand for ammunition. That is why Rheinmetall is planning to build more factories across Europe. The speed of this process is evident from the reports published in recent months. What is striking is how openly the company communicates about its expansion in Europe, while its business deals in South Africa rarely feature publicly.
Asked about exports from RDM in South Africa, Rheinmetall said they were bound by “strict confidentiality”. A spokesperson added that its “growing global network” allows the group to “produce for our customers in line with demand – in particular for the Bundeswehr, partner countries from the EU and Nato, Ukraine and other friendly nations.”
But this one new factory is apparently not enough to meet the new huge demand for ammunition. That is why Rheinmetall is planning to build more factories across Europe. The speed of this process is evident from the reports published in recent months. What is striking is how openly the company communicates about its expansion in Europe, while its business deals in South Africa rarely feature publicly.
Asked about exports from RDM in South Africa, Rheinmetall said they were bound by “strict confidentiality”. A spokesperson added that its “growing global network” allows the group to “produce for our customers in line with demand – in particular for the Bundeswehr, partner countries from the EU and Nato, Ukraine and other friendly nations.”
“The steadily growing global Rheinmetall network... enables us to produce for our customers in line with demand – in particular for the Bundeswehr, partner countries from the EU and Nato, Ukraine and other friendly nations.”
— Rheinmetall
In March, the company announced the construction of a gunpowder factory in Romania. In July, plans to build a factory in Ukraine were publicised and in November, an agreement was signed for an ammunition production plant in Lithuania.
The business with the munitions factories is booming. Therefore, Rheinmetall is now also expanding its business in South Africa. At the beginning of August 2024, the group announced that it was set to acquire a majority stake in Resonant Holdings. The South African company, which has around 150 employees, specialises in explosives production plants. In the future, the German company is likely to supply even more munitions factories around the world via South Africa. Or as Rheinmetall put it in a short press release: “The planned acquisition of Resonant Holdings underscores Rheinmetall's commitment to expanding its technological capabilities and offering its partners cutting-edge solutions.”
But meanwhile, it is becoming apparent to the German group that its South African business model is no longer without danger. For a long time, it served the company not to have to deal with strict German arms export controls. Now it is turning against the company. At the end of August, it emerged that a Rheinmetall order of urgently needed 155mm ammunition to Poland had been halted. The reason? The South African authorities had indefinitely delayed its decision on the delivery, on the grounds that the ammunition could end up in the hands of the Ukrainian army.
Two months later, the South African President hosted his Russian counterpart Vladimir Putin in Johannesburg. "We continue to see Russia as a valued ally, as a valued friend who supported us right from the beginning, from the days of our struggle against apartheid," declared Cyril Ramaphosa.
The two leaders then flew to Kazan in Russia after the bilateral meeting to attend the 16th BRICS Summit, where they were joined by their counterparts from Egypt, UAE, and India, among others. India’s Prime Minister Narendra Modi could well have asked how the arms factory they bought from the Germans worked out for them, because he just joined that club.
---------
Additional reporting: Wojciech Ciesla, Neel Madhav, Anand Mangnale, Raymundus Rikang, Amund Trellevik
Editor: Chris Matthews
Cover Illustration: Spoovio / Georgina Choleva
This article was developed with the support of Journalismfund Europe.
The business with the munitions factories is booming. Therefore, Rheinmetall is now also expanding its business in South Africa. At the beginning of August 2024, the group announced that it was set to acquire a majority stake in Resonant Holdings. The South African company, which has around 150 employees, specialises in explosives production plants. In the future, the German company is likely to supply even more munitions factories around the world via South Africa. Or as Rheinmetall put it in a short press release: “The planned acquisition of Resonant Holdings underscores Rheinmetall's commitment to expanding its technological capabilities and offering its partners cutting-edge solutions.”
But meanwhile, it is becoming apparent to the German group that its South African business model is no longer without danger. For a long time, it served the company not to have to deal with strict German arms export controls. Now it is turning against the company. At the end of August, it emerged that a Rheinmetall order of urgently needed 155mm ammunition to Poland had been halted. The reason? The South African authorities had indefinitely delayed its decision on the delivery, on the grounds that the ammunition could end up in the hands of the Ukrainian army.
Two months later, the South African President hosted his Russian counterpart Vladimir Putin in Johannesburg. "We continue to see Russia as a valued ally, as a valued friend who supported us right from the beginning, from the days of our struggle against apartheid," declared Cyril Ramaphosa.
The two leaders then flew to Kazan in Russia after the bilateral meeting to attend the 16th BRICS Summit, where they were joined by their counterparts from Egypt, UAE, and India, among others. India’s Prime Minister Narendra Modi could well have asked how the arms factory they bought from the Germans worked out for them, because he just joined that club.
---------
Additional reporting: Wojciech Ciesla, Neel Madhav, Anand Mangnale, Raymundus Rikang, Amund Trellevik
Editor: Chris Matthews
Cover Illustration: Spoovio / Georgina Choleva
This article was developed with the support of Journalismfund Europe.