Abdullah Al-Haqim 
The business of German arms manufacturers, in light of the wave of armament in Europe, is witnessing rapid growth as demands for all types of equipment, weapons, ammunition, military trucks, air defense systems and drones are stacked. The matter reached many companies to the use of civil production facilities for military purposes, and they raised the percentage of employment by bringing thousands of car manufacturers who are currently suffering from weakness; This all contributed to increasing the prices of its stock on the stock market. What are the reasons for this mutation, and what are its horizons for the German economy?
A political and security necessity
Experts in the field of security and defense in the German Council for Foreign Relations benefits that with the Russian invasion of Ukraine and the changing political situation, the European countries in NATO have rushed to spend more money to provide weapons, and to increase military support to Ukraine, where the drones showed their increasing effectiveness, as well as Germany’s decision to re -equip the Bundeshir (the army) and signing decades of billions for a year for a year 2030 with companies such as “Renmate”, the largest German weapons companies, which included the purchase of tanks, fighters, combat vehicles and light armored vehicles for rough roads.
There is a belief among military experts that after a ceasefire in Ukraine, Russia may be able to renew its military power to launch another attack during up to 8 years, which enhances the need for more speed in arms purchases. Renmate expects alone that a breakthrough in requests will be achieved between 300 and 400 billion euros.
Billions
At a time when the figures issued by the Stockholm Institute for Peace Research indicate that four German companies have reached the list of the 100 best companies in the world, which are “Reinmetal”, “Hensingt”, “Dihel” and “Tesencrop”, other companies such as “TMS” and “KIND” are working to expand their productive capabilities and increase their employees as well. On this, the CEO of the Federal Association for German Security and Defense Industries, Christophe Atbodin, told ARIDE news, that instead of complaining about the economic damage caused by the slowdown in the auto industry, companies are working to transfer production facilities and use them for military purposes, and benefit from the transfer of skilled workers from the auto industry sector to the defense sector in the way that is compatible with the requirements of partnerships. He explained that there are three factors that will help companies in the future: first to sustainable financial planning, coordination between other European Union countries regarding what is required of each product, as well as improving framework conditions in order to build additional and quickly armament facilities in Germany.
In a related context, “Rimmanmital”, which constitutes artillery, military trucks, air defense systems, tanks and ammunition, announced 80 % of its industries, that it wants to increase its working power by one -fifth, with assurances of the company’s executive director Armen Babrger, during the presentation of the annual numbers earlier this week, by turning to raise the number of employees from 32 thousand to about 40 thousand employees within two years by doing The great prosperity achieved by the company, and the fullness of its requests, due to the changing global policy and the option to re -armament.
He explained that Renmate sales increased to about 9.8 billion euros, last year, or 36% from the year 2023. The business became more profitable, while operating profits increased by 61%, which is the highest level ever in the history of the company. From this standpoint, Rynmetal will use the production headquarters in Nuese and Berlin, which are dedicated to the manufacture of car components, and other industrial sectors for military production, in light of the weakness faced by the auto industry sector in the country, and to benefit from its employees there in the defense sector in the future.
Also in this regard, Oliver Bloom, Oliver Bloom, said in an interview, in response to a question about whether the company will have contributions to military industries, that it is mainly open to such issues, indicating that the administration is related to the Osnabrk and Dresden manufacturers, closely looking at the needs in the arms industry. Bloom cited military vehicles as an example.
Great possibilities for growth
At a time when the strengthening of European military capabilities is a political and security necessity, as it also provides economic advantages, European researcher Niklas Westman was considered, in an interview with “Al -Nahar”, that in the years before the war against Ukraine, the relying in Europe was to import weapons from abroad, the most important of which is the American. But the situation has changed recently, and the Europeans have increased work to re -armament and military spending for considerations that have become known, including Trump’s demand for Europe to make more efforts to defend the Russian threat and increase its military purchases, which contributed to expanding its markets and achieving enormous profits and its acquisition of civil factories to enhance production more.
Westman affirmed that Germany has great potential for growth in this sector, and German weapons companies will have a strong role and presence, especially as it has developed its technology systems; There are many examples of this, including the Iris -T air defense system from Daeel. On the other hand, there are small companies in the field of electronic industries that seek to expand their investments with the increasing demand for cybersecurity and electronic warfare, as well as those that are conducting research in the field of artificial intelligence. All this with the political signals issued by Brussels and Berlin regarding military investments, and thus improve the potential of the market.
With German arms companies benefiting from the global security situation, many economic studies have shown that investments in the field of defense not only lead to the depletion of funds, but also their economic fruits as well, and will eventually help the German economy grow again. In the context, an analysis conducted by the Administrative Consulting Company “Ernst and Young” on behalf of “Deca Bank”, showed that the annual added value will increase by 46 billion euros, if the European NATO partners increase their defensive spending from 2 to 3 percent of GDP. In general, investment in defense may increase the growth of GDP by 0.66 percentage points. In addition, these investments will create 660,000 new job opportunities.
The question remains whether these companies are able to meet demands and manufacture large numbers of tanks, missiles and air defense systems, as well as the ability to link German universities, companies and the German armed forces in a closer way to increase innovations more quickly and break the dominance of American companies on the European market.
