Trade.Information

Company Name: Rheinmetall AG

Company Type: Manufacturer of Military Weaponary

Company Profile

1889

The German Ministry of War awards the mining and foundry concern Hörder Bergwerks- und Hüttenverein (HBH) a major ammunition contract for a new rifle for the German Army. Lacking the capacity to execute the order itself, HBH turns to the Thuringian entrepreneur Heinrich Ehrhardt, offering him the contract in return for a commission. Undaunted by his lack of a workforce trained in ammunition production, to say nothing of the required production capacity or financial resources, Ehrhardt takes up the challenge and accepts the order, founding Rheinische Metallwaaren- und Maschinenfabrik Actiengesellschaft on April 13th 1889 with the help of a bank syndicate.

On May 7th 1889, the new company is registered at the Local Court in Düsseldorf. The same year sees the start-up of production in rented space in Düsseldorf's Talstraße. Barely a year later, the young enterprise is already employing 1,400 people, and turning out 800,000 bullets daily; by the end of 1891, a total of 120 million rounds will have been produced.

At the same time as completing the company's first government order, Heinrich Ehrhardt is already erecting his own factory buildings in Düsseldorf-Derendorf, to which production is gradually transferred.

1891

On January 28th, the Imperial Patent Office awards Heinrich Ehrhardt a patent (No. 67921) for a "Process for Punching and the Simultaneous Shaping of Iron and Steel Ingots in a Heated Condition". Numerous attempts by the resourceful engineer – beginning at Zella (in Thuringia) back in 1889 – to find a way of producing seamless tubes are now crowned by success. In addition, he develops a pressing and drawing technique, for which he is awarded Patent No. 73005 on April 21st 1892. The tubes and hollow bodies manufactured using Ehrhardt's pressing and drawing technique find eager customers in industry, the military, railway and shipping companies as well as gas and water utilities.

1892

In the Derendorf plant, a tube mill and iron foundry are set up in order to start artillery tube production. The new production facilities also permit the manufacture of non-military items such as steel wheels or cylinders.

Because the expanded production programme has substantially increased the need for steel, Heinrich Ehrhardt acquires (with Paul Heye, his later son-in-law), a small drop forge in Rath near Düsseldorf, which is transformed into the Metallwerk Ehrhardt & Heye stock corporation.

1894

For the first time, Rheinmetall stock is officially listed on the Berlin stock exchange.

1896

The company Rather Metallwerk is integrated into Rheinische Metallwaaren- und Maschinenfabrik as the "Rath Division". Ehrhardt's company henceforth has the capacity to manufacture its own high-grade steels and semi-finished products, making it largely independent of outside suppliers.

Ehrhardt develops the first fieldworthy recoiling cannon, one of the outstanding engineering achievements of the age.

Now nearly 60, he is awarded high honours by the king of Norway, the emperor of Austria, and finally, the German Kaiser, Wilhelm II. For the company, Ehrhardt's invention means major commercial success.

1899

On the Lüneburg Heath in northern Germany, not far from the village of Unterlüß, Rheinische Metallwaaren- und Maschinenfabrik leases a large area of land for testing its weapons and ammunition. The first building to go up in 1905 is a 16-square meter shop for manufacturing shells and cartridge cases. In the years that follow, the firing range is considerably extended with additions to the site. Today, the Rheinmetall testing terrain in Unterlüß comprises a total area of approximately 50 square kilometres, 80 percent of which is used for commercial forestry.

1901

By acquiring Munitions- und Waffenfabrik AG of Sömmerda in Thuringia, previously known as Dreyse'sche Gewehrfabrik, a manufacturer of handguns, cartridges and igniters, Rheinische Metallwaaren- und Maschinenfabrik extends its production programme and secures its hold on the market.

In the years that follow, production is systematically expanded. Rheinmetall's recoiling cannon brings the company its first business successes abroad. The British Army orders 18 batteries including ammunition and cassons. Additional orders are received from Norway, Austria and the United States of America.

1902

After an intense competitive evaluation Rheinmetall receives an order from the US government for 50 rapid-fire guns with long barrel recoil, together with the accompanying ammunition. Even though this order was not very large it was highly significant as the US rarely ordered foreign weaponry.

1905

The first loading, assembly and packing operation for artillery rounds is built at Unterlüß.

1906

With a view to extending the Düsseldorf production facilities, Rheinmetall acquires the neighbouring "Germania" factory, which is integrated into the company as Works II.

1909

The "System Ehrhardt" mountain howitzer is fielded in German Southwest Africa. The Unterlüß range is extended so as to be able to test fire Rheinmetall's new naval guns.

1914

At the outbreak of the First World War in August, Rheinmetall is one of Germany's largest manufacturers of military equipment. In January 1914, the Rheinmetall factories employ a workforce of almost 8,000. A year later, Rheinmetall has a total of 14,000, and by 1918 the workforce has mushroomed to almost 48,000 blue- and white-collar employees, including some 9,000 women.

1918

With the cease-fire in November, arms production in Germany comes to an abrupt halt, and the company, whose production space in Düsseldorf has increased nearly fourfold during the war years, is forced to lay off much of its staff.

1919

Signed in June, the Treaty of Versailles prohibits the German Reich from manufacturing large calibre weapons, initially depriving Rheinmetall of a substantial share of its livelihood. With the majority of its share capital in state hands by 1925, Rheinmetall responds to the new situation by moving increasingly into non-military production. In the years that follow, steelmaking at the Rath mill is substantially augmented with a view to assuring the production of civil-sector products.

1920

During the first half of the 1920s, farming equipment and heavy steam ploughs, railway carriages and locomotives are being built in the Rhineland, while light-engineering products (typewriters and calculating machines), grinding machines and automotive components are manufactured at Sömmerda in Thuringia. By 1929, the latter plant has developed into the biggest manufacturer of cardan shafts in Germany.

1921

The Allies permit Rheinmetall to recommence production of medium calibre weapon systems on a small scale.

1923-1925

Belgian and French troops occupy the Rheinland, including Rheinmetall's Derendorf plant. With orders short, civil-sector production in Düsseldorf is soon making a loss and — apart from the company's profitable line of steam ploughs — is gradually phased out.

1925

The German Reich acquires a controlling stake in Rheinmetall through Vereinigte Industrieanlagen AG.

1928

Well into old age, Heinrich Ehrhardt continues to apply his creativity energy to the development of military technology. Not until 1921, at the age of 81, does he step down from the Supervisory Board to go into retirement in his Thuringian homeland, where, on November 20th 1928, he dies at the age of 88.

1933

In April, Rheinmetall acquires August Borsig GmbH, a company facing liquidation but still one of the most important manufacturers of locomotives in the German Reich at the time. Rheinmetall thus gains possession of a large plant in the Tegel district of Berlin.

1936

Rheinmetall and Borsig merge to form Rheinmetall-Borsig AG.

Since the mid 1930s, Rheinmetall-Borsig AG — as was true of many other industrial enterprises at the time — has been developing and manufacturing weapons and ammunition on behalf of the Reich War Ministry. These range from machineguns, automatic cannon and antitank guns to "Minenwerfer" mortars, field howitzers, antiaircraft artillery and railway guns.

1937

The subsidiary Alkett is founded in Berlin for the production of tanks and other weapons.

1938

Rheinmetall-Borsig AG moves its headquarters from Düsseldorf to Berlin.

1939

Outbreak of the Second World War. In the very first year of the war, all German arms factories are brought under the direct control of Wehrmacht agencies.

1941

Rheinmetall-Borsig AG is absorbed by the state-owned conglomerate Reichswerke AG Hermann Göring. Since the outbreak of war, Rheinmetall-Borsig's Executive and Supervisory Boards have been appointed by the directors of what has since become Germany's largest industrial concern, leading to the complete control of Rheinmetall-Borsig by the German state. The previous Executive Board, which still managed the company as a private-sector enterprise, is replaced.

1942-1944

As the war progresses, the Nazi regime demands ever greater efforts on the part of industry to step up arms production. The requirements of the German Army, Navy and Luftwaffe for technical innovations force the development departments of Rheinmetall-Borsig to push ahead at full speed, too. By July 1944, the company has developed some twenty weapon systems that have been fielded by the Wehrmacht.

1944/45

Rheinmetall factories are hit hard by Allied air raids and production is severely disrupted. As a consequence of a heavy air attack, numerous production departments of the Düsseldorf factories are relocated to territories in central Germany and to the eastern provinces of the Reich, e.g. Guben, Apolda und Breslau. The Berlin and Sömmerda factories likewise absorb relocated production facilities. In November 1944, British air attacks inflict severe damage on the Derendorf and Rath factories.

1945

Following the end of the Second World War, most of the Rheinmetall-Borsig factories are destroyed. The sites in western Germany — Düsseldorf, Berlin and Unterlüß — come under the control of the western Allies and trusteeship. Some of the factories are totally dismantled by the victorious powers; assets in the areas occupied by the Red Army are lost. Up until 1950, there is a complete ban on production.

1950

In order to make it easier to obtain production permits for its plants in West Germany, two independent companies are formed: Rheinmetall AG in Düsseldorf and Borsig AG in Berlin. Rheinmetall-Borsig AG becomes a pure holding company.

The new operating companies receive permission to manufacture civil sector products. In Berlin, Borsig AG becomes one of Germany's largest manufacturers of steam boilers and refrigeration systems. In Düsseldorf, typewriters, shock absorbers, elevators, tannery machines as well as transport and loading equipment (e.g. cranes) are built.

1956

On June 23rd, Röchling'sche Eisen- und Stahlwerke GmbH takes over a majority interest in Rheinmetall-Borsig AG from the Federal Republic of Germany, the legal successor of the German Reich. At the beginning of August, its subsidiary Borsig AG is sold to the Salzgitter group.

In November of the same year, the General Meeting in Berlin votes to rename the company Rheinmetall Berlin AG. Its Rhineland-based subsidiary, Rheinmetall AG, is transformed into Rheinmetall GmbH in 1957. In parallel with the creation of the Bundeswehr, Rheinmetall reverts to the production of military equipment, manufacturing machineguns, automatic cannon and ammunition for the country's new armed forces.

1964

Apart from light weapons, Rheinmetall GmbH now begins manufacturing heavier ordnance as well, i.e. gun tubes and gun carriages. Rheinmetall begins producing the main armament for tanks and artillery systems. A tank-killer gun, a standard tank turret and a self-propelled howitzer are all developed in Düsseldorf.

1970

Rheinmetall acquires a majority stake in NICO Pyrotechnik Hanns-Jürgen Diederichs KG of Trittau.

1972

In Unterlüß, Rheinmetall GmbH erects a state-of-the-art temperature testing facility for climatic testing of weapons and military equipment; it is extensively used for testing civil sector products as well.

1978

Main production of the FH 70 field howitzer commences.

1979

The first Leopard 2 main battle tank is delivered to the Bundeswehr. It is fitted with a 120 mm smoothbore gun developed by Rheinmetall GmbH, widely hailed as a major technical breakthrough in Nato tank armament.

1988

Diehl Munitionssysteme GmbH & Co. KG and Rheinmetall jointly found Gesellschaft für Intelligente Wirksysteme mbH (GIWS). The company specialises in intelligent ammunition and other lethal mechanisms for a wide variety of operational scenarios.

1989

Rheinmetall celebrates its 100th anniversary.

1990

Rheinmetall GmbH acquires a 60-percent-share of MaK System GmbH of Kiel, a unit of Fried. Krupp GmbH. MaK System GmbH not only makes high-quality tactical systems, but also special vehicles for use in environmental protection. In 1992 Rheinmetall GmbH takes over the remaining 40 percent of the company, absorbing it as a wholly own subsidiary. The same year, MaK supplies the Bundeswehr with the first Wiesel armoured weapons platforms.

1992

After more than a century, Rheinmetall GmbH abandons its longstanding site in Düsseldorf-Derendorf, concentrating its defence technology production capacities at Unterlüß, its "Competence Centre" in northern Germany. Its R&D, sales and headquarters units move into new quarters in Ratingen, just north of Düsseldorf.

By taking up a stake in WNC-Nitrochemie GmbH of Aschau am Inn, a producer of powder, propellants and combustible cartridge components, Rheinmetall underscores its commitment to munitions production.

1994

Rheinmetall GmbH changes its name to Rheinmetall Industrie GmbH.

1995

Rheinmetall Industrie GmbH acquires a 60-percent-stake in Mauser-Werke Oberndorf Waffensysteme GmbH from the Nuremberg-based Diehl group, augmenting Rheinmetall's expertise in medium calibre automatic cannon systems.

1996

Transformation of Rheinmetall Industrie GmbH into a stock corporation.

In December, acting in cooperation with Badenwerk AG (as a dormant partner), Rheinmetall acquires a 51-percent-stake in STN Atlas Elektronik GmbH from the bankrupt Bremer Vulkan concern, the remaining 49 percent being taken over by the third partner of the consortium, British Aerospace. Industrial management of STN Atlas Elektronik is assigned to Rheinmetall. A company with global stature in the domain of defence electronics and civil maritime electronics, STN Atlas Elektronik reinforces Rheinmetall's competence in weapons and ammunition as well as in systems and equipment.

Rheinmetall acquires a 33-percent-interest in the Dutch company Eurometaal N.V. of Zaandam.

1997

Rheinmetall Industrie AG prepares for future changes in the defence technology sector by reorganising is corporate structure. To improve its ability to cooperate on the national and international level, it spins off its operational units, converting them into legally autonomous corporations. The Weapons & Ammunition division of Rheinmetall Industrie AG is transferred to the newly founded corporation Rheinmetall W&M GmbH, jointly based in Unterlüß and Ratingen.

MaK System GmbH delivers the first serially produced Keiler armoured mine clearing vehicle to the Bundeswehr. A prototype of the armoured vehicle is already operating successfully in Bosnia.

1998

Rheinmetall takes over the 25-percent-share in STN Atlas group held by Energie Baden-Württemberg (formerly Badenwerk AG), giving the company a controlling interest in STN Atlas GmbH. Effective January 1st, STN Atlas Elektronik spins off its civil electronics activities, transferring them to the newly founded STN Atlas Marine Electronics GmbH of Hamburg.

Also in January, WNC Nitrochemie of Aschau am Inn (a subsidiary of Rheinmetall Industrie AG) and the Wimmis, Switzerland-based powder & propellant unit of SM Schweizerische Munitionsunternehmung of Thun, Switzerland, merge their operations in a joint venture, Nitrochemie Wimmis AG.

Jointly developed by Rheinmetall and MaK, the first unit of a new tube artillery system, the PzH 2000 self-propelled howitzer, is transferred to the Bundeswehr. MaK's Rhino mine clearing system goes into operation in Croatia.

Rheinmetall Industrie AG takes over the defence technology component of BUCK System GmbH of Neuenburg, which is subsequently incorporated as BUCK Neue Technologien GmbH.

1999

Preparing itself for the alliances and consolidations which would characterise the forthcoming restructuring of the European defence industry, Rheinmetall moves to unite its defence technology capabilities under the banner of the newly founded Rheinmetall DeTec AG.

In September, Rheinmetall DeTec AG acquires a majority stake in Oerlikon Contraves AG of Zurich, a world-renowned supplier of combined gun and guided missile systems for air defence.

In order to bolster its position in the medium calibre sector and establish an even wider presence in the European market, Rheinmetall DeTec AG increases its stake in the Dutch corporation Eurometaal Holding N.V. to 66 percent.

At the end of 1999, Rheinmetall DeTec acquires the defence technology assets of IWKA Aktiengesellschaft of Karlsruhe. These include KUKA Wehrtechnik GmbH of Augsburg and Henschel Wehrtechnik GmbH of Kassel, both leading suppliers of wheeled armoured vehicles.

2000

The hitherto independently operating companies Henschel Wehrtechnik, KUKA Wehrtechnik and MaK System Gesellschaft mbH are merged to form Rheinmetall Landsysteme GmbH.

To create synergies in the field of active and passive countermeasures systems for ground, air and naval applications, Nico Pyrotechnik Hanns-Jürgen Diederichs GmbH & Co. KG and RUAG Schweiz AG acquire 31 percent of BUCK Neue Technologien GmbH; in 2002, Rheinmetall DeTec becomes sole owner of BUCK Neue Technologien.

2002

Narrowing its focus to core defence activities, Rheinmetall sells the Eurometaal Holding N.V. subsidiary Intergas B.V., a furnace and boiler manufacturer. Eurometaal N.V. (Netherlands) is closed.

Rheinmetall's subsidiaries and affiliates are organised according to their competency into four strategic business units, each being responsible for its own markets and results:
Land Systems
Air Defence Systems
Weapon and Ammunition
Defence Electronics

In a parallel move, the company's operations in the large and medium calibre domain are merged in the Weapon and Ammunition division. As a result, the jointly managed companies Mauser-Werke Oberndorf Waffensysteme GmbH and Oerlikon Contraves Pyrotec AG are transferred to this division.

The German parliament approves a project to develop a new infantry fighting vehicle (IFV) for the Bundeswehr, viewed as a project critical for sustaining the future viability of the German defence industry. The ensuing development contract is worth some €200 million. In order to execute it, Rheinmetall Landsysteme and Krauss-Maffei Wegmann found the joint venture PSM GmbH, in which each company holds a 50-percent-stake.

2003

Rheinmetall acquires the remaining shares of Oerlikon Contraves AG, becoming sole owner of the air defence specialist.

In line with the Group's policy of focusing on ground forces technology, STN Atlas Elektronik is divided into two parts. Its Land, Air Systems and Simulation departments remain part of Rheinmetall DeTec, operating as Rheinmetall Defence Electronics GmbH. The Naval Systems unit and the production departments are transferred to BAE Systems, former co-owner of the Bremen-based company.

Rheinmetall Landsysteme delivers the first of its new mine-resistant Marder 1 A5 infantry fighting vehicles to the KFOR troops in Kosovo.

The German navy receives the first remote-controlled MLG 27 light naval gun, developed for close-range self-protection of battle ships and other smallish units at sea.

2004

By selling the civil sector-oriented Heidel group (a manufacturer of machines and machine tools) as well as the Nico Feuerwerk GmbH, Rheinmetall DeTec successfully completes its strategy of shedding non-core businesses.

After almost ten years at the helm of the Defence sector, Dr. Ernst-Otto Krämer is retiring. In addition to his position as Rheinmetall AG's CEO, Klaus Eberhardt becomes Chairman of the Rheinmetall DeTec Executive Board.

Reacting to changing market conditions, Rheinmetall DeTec AG moves to reorganise its Weapon and Ammunition division. By merging Rheinmetall W&M GmbH (the previous parent company) with Mauser-Werke Oberndorf Waffensysteme GmbH, BUCK Neue Technologien GmbH and Pyrotechnik Silberhuette GmbH to form the new company Rheinmetall Waffe Munition GmbH, Rheinmetall DeTec AG – already Europe's leading supplier of ground forces equipment – aims to sharpen further its international competitive edge.

Rheinmetall Defence Electronics GmbH, DIEHL Munitionssysteme GmbH and RAFAEL Ltd. signes an agreement establishing a new company, EuroSpike GmbH, which serves as the prime contractor for the EuroSpike Family of missiles for European customers.

By opening a representative office in Poland, the Rheinmetall DeTec group takes another major step on the path to internationalization, pursuing its strong commitment to serve important future markets. Furthermore the company takes another step forward in the globalization of its operations by setting up Rheinmetall Hellas S.A., and thus amplifying its presence with Nato member Greece.

2005

As part owner of the newly founded company HIL Heeresinstandsetzungslogistik GmbH, Rheinmetall Landsysteme has been entrusted with maintaining selected vehicles and weapons for the German Army over the next eight years.

Oerlikon Contraves Pyrotec AG is being renamed RWM Schweiz AG as part of moves to restructure the Weapon Munition divison.

Offering a host of advanced system solutions for internal security and civil defence tasks, Rheinmetall Defence's new "Public Security" unit is the company's robust response to contemporary threat scenarios.

By taking over medium-calibre specialist Arges m.b.H. of Schwanenstadt, Austria, and taking up a 50% stake in AIM Infrarot-Module GmbH of Heilbronn, Germany (which will now be run as a joint venture with Diehl), Rheinmetall Defence has taken its strategy of internationalization a step further as well adding to its growing portfolio of products.

About Company

Leading position in defence technology

The Defence arm of Germany's Rheinmetall Group stands out prominently among the world's top suppliers of defence technology and security equipment. Its 6,800-strong staff generate annual sales of €1.4 billion.

As Europe's leading supplier of technology for ground forces, Rheinmetall Defence offers a wide array of platforms and components available as stand-alone or networked system solutions. Rheinmetall Defence stands for longstanding experience and pioneering innovation in the world of armoured vehicles, weapons and ammunition, air defence and electronics – a commitment to excellence which also extends to its naval and air force applications and public security products. The company's unsurpassed capacity to integrate individual components into system solutions is what makes Rheinmetall Defence such a powerful partner of the world's armed forces and security agencies.

A leader in armoured vehicles and air defence technology

A core competence of Rheinmetall Defence is the development and manufacture of armoured vehicles of various weight classes, ranging from the new Light Infantry Vehicle for mobile special forces units to a variety of combat engineer vehicles and the legendary Leopard main battle tank, many of whose key components bear the Rheinmetall hallmark. In cooperation with a joint venture partner, Rheinmetall has developed and manufactured the Bundeswehr's new Puma, an airportable infantry fighting vehicle. The company's acclaimed Fuchs/Fox NBC armoured reconnaissance vehicle, already procured by seven countries, underscores Rheinmetall's global lead in this critical field.

Rheinmetall Defence also dominates the world market for cannon-based air defence systems. Today, the armed forces of over forty nations rely on short-range air defence systems made by Rheinmetall Defence's Swiss subsidiary, Oerlikon Contraves, the only company in the world which produces complete antiaircraft systems, including radar and networking technology. Moreover, Rheinmetall Defence also supplies mobile antiaircraft guided missile platforms.

Weapons, ammunition and defence electronics: a complete range of cutting edge components and systems

The company's Weapon and Munitions division develops, manufactures and markets a comprehensive array of medium- and large-calibre products, ranging from the automatic cannon in the Eurofighter and medium-calibre naval guns for small surface combatants to the 120 mm smoothbore main armament of Germany's Leopard tank and the American Abrams. But the division's product portfolio also encompasses obscurant-based passive countermeasure systems for concealing not only military assets but also sensitive civilian installations such as nuclear power plants. Moreover, Rheinmetall Defence is also developing a number of highly advanced new capabilities, e.g. for disabling enemy electronics.

Rheinmetall Defence supplies state-of-the-art technology for network-enabled command systems capable of directing complex military operations and depicting the real-time situation on the ground, as well as for vehicle-supported and ground-based reconnaissance with optoelectronic sensors. Developed by Rheinmetall Defence on behalf of the Bundeswehr, the company's unmanned air vehicles enable the aerial reconnaissance and engagement of targets. Moreover, the company makes simulators for training the crews of ships, combat aircraft and tanks, supplemented by large-scale tactical simulation systems for exercising operational scenarios, which are also useful in research and development.

Rheinmetall Defence, a major force in Force Transformation

By equipping the world's armies for new missions such as peace enforcement and rapid intervention, Rheinmetall Defence is helping to shape the global process of Force Transformation. Examples here include vehicles which are well-protected but still light enough to be airlifted into distant trouble spots, or the adoption of open IT interfaces enabling the universal networking of platforms of different military components and even different armies. Or, by the same token, the attainment of information superiority, for example by deploying unmanned air vehicles. Another Rheinmetall specialty, the use of robotic systems for the safe neutralization of improvised explosive devices and unexploded ordnance, is a further aspect of Force Transformation in a wider sense.

In the process, conventional weaponry is increasingly being interlinked with state-of-the-art protection concepts, reconnaissance assets and networking technology. For example, Rheinmetall Defence is pushing forward with system concepts for protecting convoys and forward operating bases in war-torn regions. In addition to an extensive array of platforms and components, including state-of-the-art command, reconnaissance and monitoring equipment and highly effective weapons systems and ammunition, Rheinmetall Defence is unsurpassed in integrating the most diverse individual components and subsystems into networked total solutions.

New concepts in counterterrorism

Rheinmetall's proven competence in the field of defence technology forms the foundation for its recent expansion into counterterrorism. The company supplies concepts and products for countering the terrorist threat. Whether the task at hand is the protection of major events or the security of port facilities or international borders, Rheinmetall offers intelligent solutions to a wide variety of public security problems.

A global presence is driving growth

Rheinmetall Defence operates internationally. Along with subsidiaries in Europe, North America and Asia, the Group maintains a tightly woven global network of branches and representatives offices.

Although the armed forces of Germany remain its largest single customer, exports already account for nearly 60% of total Rheinmetall Defence sales. Eastward enlargement of the EU and Nato represents additional opportunities for growth, as do the rapidly expanding economies of the Asia-Pacific region.