Daily Newsletter

03 August 2023

Daily Newsletter

03 August 2023

Deal Focus: Rheinmetall expands ammunition output with new acquisition

Rheinmetall acquires Expal Systems to systematically increase its ammunition production capacity.

John Hill August 03 2023

Each week, Army Technology, Airforce Technology and Naval Technology’s editors select a deal that illustrates the themes driving change in our sector. The deal may not always be the largest in value, or the highest profile. But we select it because of what it tells us about where the leading companies are focusing their efforts, and why. We pick apart the deal itself, and the industry theme behind it. This new, thematic deal coverage is driven by our underlying Disruptor data which tracks all major deals, patents, company filings, hiring patterns and social media buzz across our sectors.

German defence supplier Rheinmetall acquired the Spanish ammunition manufacturer, Expal Systems SAU, in a €1.2bn ($1.3bn) deal on 1 August 2023.

Rheinmetall acquisition expands its position as one of the largest ammunition and armament providers to Nato armed forces. The deal will systematically increase its production capacity: especially for artillery, mortar, and medium calibre munitions.

Moving forward, the subsidiary will operate under the name “Rheinmetall Expal Munitions, SAU.”

Worldwide ammunition production shortage

In a world where countries are now rushing to mobilise their war stocks, the acquisition provides Rheinmetall with swift access to greater production capacity, covering the entire ammunition production value-added chain, with multiple plants in Spain and a demilitarisation and soil remediation business in the United States.

Already, Rheinmetall has supplied the Ukrainian armed forces with large amounts of medium and large calibre munitions, including 20mm automatic cannon rounds for the 40 Marder infantry fighting vehicles the German Bundeswehr supplied Ukraine, and 105mm and 120mm tank ammunition for the Leopard 1 and Leopard 2. In addition, a first lot of 35mm ammunition for the Gepard anti-aircraft tank will soon be ready for shipment.

Given the likelihood of strong future demand in many countries, the acquisition places Rheinmetall in a favourable position to respond to complex new ammunition procurement requirements.

Uncover your next opportunity with expert reports

Steer your business strategy with key data and insights from our latest market research reports and company profiles. Not ready to buy? Start small by downloading a sample report first.

Newsletters by sectors

close

Sign up to the newsletter: In Brief

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Thank you for subscribing

View all newsletters from across the GlobalData Media network.

close