By Matthias Inverardi
DUESSELDORF (Reuters) -German defence group Rheinmetall wants to become a global player as it continues to grow, with an expected order backlog of some 60 billion euros ($64 billion) by the end of this year, CEO Armin Papperger said late Thursday.
“We want to become a worldwide player and we can currently do that on our own thanks to our good cash flow,” Papperger said at a gathering of the WPV business reporters association.
The company forecasts record revenue this year of over 10 billion euros off the back of a “new decade” in security policy, Papperger said in March, as European countries boost their arms stocks following Russia’s invasion of Ukraine.
Papperger floated the idea of creating a European arms consortium, adding that such a group could achieve sales of 30 to 35 billion euros and operate on a level with U.S.
companies.
On European consolidation, the CEO pointed to Rheinmetall’s previous takeovers, including of Spanish ammunition manufacturer Expal. “Now there are only a few big players left.”
These include Italy’s Leonardo, which has a significantly lower market capitalisation than Rheinmetall, or KNDS from France, he said.
($1 = 0.9315 euros)
(Reporting by Matthias InverardiWriting by Rachel MoreEditing by Matthias Williams and David Goodman)
