The German defence group Rheinmetall wants to grow in Spain with its own technology in armoured vehicles and ammunition, after inaugurating a factory in Albacete.
The German defence group Rheinmetall, led by Armin Papperger, aims to expand its presence in Spain amid rising military spending. The information, reported by La Vanguardia, places the country among those committed to increasing their defence spending to 3.5% of GDP by 2029.
The company wants to move from selling licenses for its products to integrating its own technology into local manufacturing, especially in armoured vehicles. Rheinmetall has controlled the former Expal since 2023, acquired for 1.2 billion euros and renamed Rheinmetall Expal Munitions, with eight production centres in Madrid, Trubia, Burgos, Navalmoral, El Gordo, Albacete, and Murcia.
In ammunition, the company has inaugurated a new factory in Albacete with the capacity to produce 1.2 million projectiles and 1.8 million shells per year, to meet the increased demand from NATO. The group has also recently sold its civil branch to focus on the military business.
Partnerships with Spanish companies are another key aspect of the plan. With Indra, it has signed a first cooperation agreement in armoured vehicles and, this year, the creation of a joint venture for a contract with the Army for up to 3,000 military trucks. Indra's new strategic plan, scheduled for 25 November, will need to specify this line. Rheinmetall has also explored an agreement with Sapa to bid for European contracts, such as the future Marte battle tank.
The strategy also responds to a recent stock market decline. Rheinmetall's shares nearly reached 2,000 euros, but today they are around 1,000 euros, and the group seeks to regain value by demonstrating that it can fulfil the orders it receives.
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