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Wealth & Business

How a German metalworks company became a global titan of modern warfare

Founded in 1889 to supply the German Empire, Rheinmetall has evolved from a locomotive and typewriter manufacturer into a cornerstone of NATO defense. Today, the Düsseldorf-based giant produces everything from advanced armored vehicles to loitering munitions, navigating a complex history of state control, wartime destruction, and modern geopolitical expansion.

Rheinmetall’s origins trace back to April 1889, when engineer Heinrich Ehrhardt founded the company to produce ammunition. By the First World War, it had grown into a massive industrial force, employing nearly 48,000 workers by 1918. The interwar period forced a pivot to civilian goods like locomotives and calculating machines due to the Treaty of Versailles, but the mid-1930s saw a return to armaments under the Third Reich. During the Second World War, the company was fully integrated into state-controlled war production, relying heavily on forced labor, including prisoners of war and concentration camp victims, at sites like Unterlüß.

Post-1945, the company faced total production bans in West Germany until 1950, eventually restructuring into a holding company. It spent decades diversifying into automotive technology and electronics before refocusing on defense in the early 2000s. The 2022 Russian invasion of Ukraine marked a major turning point; the German government’s 'Zeitenwende' policy and a 100-billion-euro defense fund accelerated Rheinmetall’s growth. The company now operates globally, with recent expansions including ammunition plants in Lithuania and Latvia, and joint ventures in Ukraine to produce infantry fighting vehicles.

Despite its commercial success—including promotion to Germany's DAX index in March 2023—Rheinmetall remains a subject of scrutiny. It has faced corruption allegations in India, criticism regarding export rule compliance, and even security threats, such as a foiled 2024 plot by Russian operatives to assassinate CEO Armin Papperger. Today, the company balances its role as a primary NATO supplier with a diverse portfolio that spans sensors, actuators, and advanced defense systems, reflecting the shifting demands of 21st-century global security.

Source: Rheinmetall

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