Rheinmetall, Europe's top ammunition maker, intends to repurpose two of its automotive plants in Germany to mostly make defense equipment, highlighting the impact of an expected surge in spending in the region amid U.S. tensions over the Ukraine war.
Europe's political leaders, sidelined in U.S.-Russia talks over Ukraine, came together at last week's Munich Security Conference that served as a wake-up call for the EU to come up with its own sustainable defense plan.
Rheinmetall's defense expansion affects its factories in Berlin and Neuss, where the company currently makes automotive parts, a business that has faced challenges as Germany's carmakers battle high costs and competition from abroad.
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