Rheinmetall negotiates the HIMARS production in Germany

The arms producer Rheinmetall is holding negotiations with Lockheed Martin to set up the HIMARS system production in Germany.

Armin Papperger, CEO of Rheinmetall, shared this with Reuters.

“At the Munich Security Conference, we aim to strike an agreement with Lockheed Martin to kick off a HIMARS production,” Papperger said.

He refers to an annual gathering of political and defense leaders in Munich in mid-February.

“We have the technology for the production of the warheads as well as for the rocket motors – and we have the trucks to mount the launchers upon,” Papperger said.

The CEO of Rheinmetall also noted that a deal with Lockheed Martin might prompt investments of several hundred million euros of which Rheinmetall would finance a major part.

Production of ammunition

In addition, the company wants to increase the production of tank and artillery ammunition.

This will be discussed at the meeting of representatives of the German defense industry with Defense Minister Boris Pistorius, which should take place soon.

Rheinmetall produces a range of defense products but is probably most famous for manufacturing the 120mm gun of the Leopard 2 tank.

“We can produce 240,000 rounds of tank ammunition (120mm) per year, which is more than the entire world needs,” Papperger said.

He added that the capacity for the production of 155mm artillery rounds could be ramped up to 450,000 to 500,000 per year, which would make Rheinmetall the biggest producer of both kinds of ammunition.

In 2022, the company produces some 60,000 to 70,000 rounds each of tank and artillery shells, however, production could be boosted immediately.

He also pointed a new production line for medium caliber ammunition, used by German-built Gepard anti-aircraft tanks, would go live by mid-2023.

Powder plant

The German company also considers the operation of a new powder plant, possibly in the eastern German state of Saxony, but the investment of 700 to 800 million euros would have to be footed by the government, the CEO said.

“The state has to invest, and we contribute our technological know-how. In return, the state gets a share of the plant and the profits it makes,” Papperger said.

He noted that such a plant is needed to cover the shortage of special powders to boost the output of tank and artillery shells.