The article discusses the significant investment of German arms manufacturer Rheinmetall in Baltic countries, particularly Lithuania, reflecting on the broader European military production increase.
Last autumn, the German company Rheinmetall (RHM) laid the foundation for an artillery ammunition production facility in Lithuania, marking a notable national event attended by top government officials including the president and multiple ministers. Local news agencies have classified the factory's construction as one of the most important events of the year, indicating the high profile of this initiative amid a backdrop of increasing military needs in Europe.
Latvia's Prime Minister Evika SiliΕa recently expressed gratitude to RHM's CEO Armin Papperger at the Munich Security Conference for the company's contributions to Latvia's security, resilience, and economic growth. This highlights the strategic importance of foreign investment in defense manufacturing, particularly as Europe seeks to rapidly ramp up production of 155mm artillery ammunition in light of ongoing conflicts, including support for Ukraine and replenishing depleted stockpiles.
The demand for ammunition has positioned RHM as a major beneficiary; the company aims to produce 1.1 million shells by 2027, a significant jump from 70,000 in 2022. Furthermore, RHM's stock price has surged approximately 1600% since the start of the war in Ukraine, emphasizing the economic implications intertwined with geopolitical actions. Papperger's attempts to engage with Estonian Foreign Minister Margus Tsahkna further indicate the company's expansion ambitions across the Baltic region, as European nations bolster their defense capabilities.
