Germany’s largest military contractor, Rheinmetall, has commenced assembly of components for F-35 fighter jets at a new factory located in Weeze, reflecting the company's strategic shift towards aviation and the U.S. defense market.
This facility marks Rheinmetall's expansion from its traditional focus on tank and artillery production into the aviation sector. The factory is designed to U.S. standards, potentially facilitating collaboration with American defense contractors.
Rheinmetall, headquartered in Düsseldorf, has benefited significantly from increased military spending in Germany following Russia's invasion of Ukraine, reporting record growth and a surge in market capitalization from €4 billion in 2022 to over €91 billion by July 2023.
In alignment with NATO commitments, Germany plans to increase military spending to 5 percent of domestic income by 2030, ensuring a substantial influx of funds into the defense sector. Nearly half of the €137 billion allocated for military equipment between 2020 and 2024 is earmarked for German companies.
As part of its military modernization efforts, Germany ordered 35 F-35 jets funded by a €100 billion defense enhancement initiative, with stipulations for U.S. manufacturers to partner with local firms. Rheinmetall partnered with Northrop Grumman to leverage its technical capabilities for building the F-35 center fuselage.
Additionally, Rheinmetall has entered into an agreement with Anduril, a California-based military start-up, to manufacture drones for Germany and its European allies, emphasizing a desire to reduce reliance on U.S. defense support.
Industry analysts note that these partnerships highlight the strengthening of trans-Atlantic defense ties, despite ongoing concerns regarding U.S. reliability as a partner. Rheinmetall's chief executive characterized the F-35 collaboration as a pivotal project amid strained U.S.-European relations.
Last year, Rheinmetall expanded its footprint in the U.S. by acquiring Loc Performance Products, underscoring its ambition to integrate further into the American military market.
The Weeze factory mimics its counterpart in Palmdale, California, allowing German engineers to gain firsthand training alongside U.S. colleagues. Currently, around 200 employees are working at the plant, with expectations to double that number as production ramps up.
Rheinmetall aims to increase its workforce by nearly one-third over the next three years, potentially creating up to 9,000 new jobs. Many new hires are transitioning from the automotive sector, which faces significant job losses in the coming years.
There is a growing acceptance and pride in defense industry careers in Germany, a shift from previous societal perceptions. Workers like process engineer Verena Bellinghoven note an increased recognition for their roles in defense compared to the automotive sector.