Ukraine war propels arms maker Rheinmetall into DAX index

German automotive and arms manufacturer Rheinmetall is set to join the DAX index of 40 leading shares on the Frankfurt Stock Exchange on Monday.

Since Russia's invasion of Ukraine last year, the company has seen its share price more than double.

Headquartered in Düsseldorf in western Germany, Rheinmetall produces the cannon for the Leopard 2, a tank used by several European armies and to be delivered to Ukraine, and the Panzerhaubitze 2000, a long-range howitzer deployed by the Ukrainian military.

As European countries increase their military spending in response to the Russian invasion, Rheinmetall predicts strong growth in 2023.

CEO Armin Papperger commented: "We want to participate with our products in increasing budgets for military capacities."

Now, on the DAX, Rheinmetall will be alongside industry giants such as Volkswagen and Siemens.

Germany pushes ahead with new military investments

As Berlin and its NATO partners work to strengthen their defenses in response to the Russian threat, Chancellor Olaf Scholz has announced significant new military investments.

In a statement earlier this month, Scholz emphasized the need for the "ongoing production of important weapons, equipment, and ammunition" to ensure "peace and freedom in Europe."

The AFP news agency reported that Rheinmetall and other weapons manufacturers are in discussions with the federal government and German military to address gaps in their stocks, which have been exacerbated by large deliveries of armaments to Ukraine.

ss/jsi (dpa, AFP)

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