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Germany plans to open at least four arms factories in Ukraine

A Taurus KEPD 350 missile manufactured by Taurus Systems GmbH is on display in Schrobenhausen, southern Germany, March 5, 2024. (Photo by AFP)

Germany's largest weapons, ammunition, lethal systems, and military equipment manufacturer, Rheinmetall, has devised plans to set up arms factories in Ukraine.

Rheinmetall announced on Thursday that it plans to open at least four factories in Ukraine, as it targets a record 10 billion euros ($10.9 billion) in sales this year.

The factories in Ukraine will be modeled on an ammunition factory that Rheinmetall is building in Germany.

The Ukrainian forces war against Russia has boosted Germany's weapons sales.

Rheinmetall announced that the factories in Ukraine would be for producing shells, military vehicles, gunpowder and anti-aircraft weapons.

"Ukraine is now an important partner for us, where we see a potential of between two and three billion euros (in sales) per year," Rheinmetall CEO Armin Papperger said at the presentation of the company's 2023 results.

Rheinmetall, which makes key proponents for the Leopard tanks, reported record sales of 7.2 billion euros last year, and is aiming to top 10 billion in 2024.

Shares of the Duesseldorf-based company went up five percent in Frankfurt stock exchange after the results were announced.

Rheinmetall, which already operates a joint venture in Ukraine for repairing military vehicles, is also going to build a factory in Lithuania, where Germany plans to deploy a brigade-sized military unit on a permanent basis to help secure NATO's eastern flank.

Germany's largest manufacturer of military equipment, which had already announced an agreement with a Ukrainian company in February to build artillery shells in Ukraine, said it was planning to ramp up its production of artillery shells to provide Kiev with more ammunition.

However, German lawmakers in the lower house of parliament rejected calls to send Taurus missiles to Ukraine.

Lawmakers in the Bundestag on Thursday voted against the delivery of the Taurus cruise missile to Ukraine which had been proposed by the opposition MPs.

On Wednesday, Chancellor Olaf Scholz told lawmakers that prudence is a virtue and rejected the call to send Taurus long-range cruise missiles to Ukraine. 

Ultimately, lawmakers in the Bundestag voted against the motion by 495 votes to 190, with five abstentions.

NATO Secretary-General Jens Stoltenberg said on Thursday that Ukrainian forces were running out of ammunition, complaining that NATO member states were not providing enough arms and munitions.

"Unprecedented aid from NATO allies has helped Ukraine survive as an independent nation. But Ukraine needs even more support and they need it now," Stoltenberg said talking to reporters at the NATO headquarters in Brussels, Belgium.

"The Ukrainians are not running out of courage, they are running out of ammunition," Stoltenberg said. "NATO allies are not providing Ukraine with enough ammunition and that has consequences on the battlefield every day."

"It is an urgent need for allies to make the decisions necessary to step and provide more ammunition to Ukraine. That's my message to all capitals," Stoltenberg said.

Last week, European Union (EU) member states agreed to allocate an additional 5 billion euros ($5.5 billion) in military assistance to Ukraine at a meeting in Brussels.

The EU agreement came after months of debates among member states, with France and Germany playing a key role in shaping the discussions.

They finally agreed to give priority to the European defense sector, while “exceptionally allowing" for flexibility in cases where it cannot provide within a timeframe compatible with Ukraine's needs.

According to the Stockholm International Peace Research Institute (Sipri), at least 30 countries have provided weapons and ammunition to Ukraine since Russia's military operation was launched in February 2022.

The US recently approved a new weapons package worth $300 million for Ukraine. However, an additional $60 billion in funding for Kiev has been blocked by lawmakers as Republicans in Congress have put it on hold, arguing that President Joe Biden is only prolonging the war against Russia, with no plans to end the conflict.


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