German defense giant Rheinmetall AG announced this week that it is going to establish four manufacturing plants in Ukraine in the near future.
These facilities are expected to churn out armored vehicles, air defense weapons and shells, with the entire scheme apparently being aimed at assisting Kiev, as the latter finds itself unable to restore the military hardware.
It remains unclear, however, for how long these plants will be able to remain operational after Russian intelligence learns their location.
News of this development comes as Rheinmetall seems to be doing quite well for itself even as Germany’s economy struggles with recession.
The company's profits have soared amid the Ukraine conflict and NATO militarization, with it’s stock price jumping by more than 400% over the past three years.
Rheinmetall is expected to generate a record $10.9 billion profit from arms sales this year. Rheinmetall also reported an increase in operating margin during fiscal year 2023 (from 12% the year prior to 12.8%).
Founded in 1889 as the Rheinische Metallwaaren- und Maschinenfabrik AG, Rheinmetall was making weapons and munitions for the German war machine since before World War I and Nazi regime by the time World War II broke out.
Twice in its history – namely, after Germany’s defeats in WWI and WWII respectively – the company had to switch to making civilian products due to restrictions imposed on the country by the victors, only to resume military production and gain profit by supplying arms to those who are ready to pay.