War in Ukraine sends weapons maker Rheinmetall to the DAX index
German auto and weapons maker Rheinmetall is set to join the Frankfurt Stock Exchange’s DAX index of top 40 stocks on Monday.
Since Russia’s invasion of Ukraine last year, the company has seen its share price more than double.
Based 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 capabilities.”
Now, at DAX, Rheinmetall will be alongside industry giants such as Volkswagen and Siemens.
The inclusion of Rheinmetall in the index will result in the removal of the dialysis specialist, Fresenius Medical Care.
Germany advances 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 “continuous production of important weapons, equipment and ammunition” to ensure “peace and freedom in Europe”.
The AFP news agency reported that Rheinmetall and other weapons makers are in talks with the federal government and German military to address gaps in their stockpiles, which have been exacerbated by large deliveries of weapons to Ukraine.
Source: DW
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.