Why is Rheinmetall AG one of the most successful companies in Germany? Since its foundation in 1889, the armaments group has experienced an eventful story that was characterized by political change and strategic decisions.
• In 1889 the “Rheinische Metallwaren- und Machinasfabrik Aktiengesellschaft” was founded
• After the two world wars, the Rheinmetall had to switch to civilian production areas
• Today the Rheinmetall is internationally active at 174 locations worldwide
With its almost 40,000 employees worldwide at 174 locations and production facilities worldwide, the DAX company Rheinmetall is one of the most successful companies in Germany. At the same time, the Rhine metal is one of the oldest companies: it was founded in 1889 as a “Rheinische Metalwaren- und Machorfabrik Aktiengesellschaft”.
From 1925 the German Reich was the main part of the Rheinmetall
At that time, the Hoerder mine and hut association had decided to launch the company and entrusted the engineer Heinrich Ehrhardt with the management. This initiated the establishment of the first work in Düsseldorf -derendorf in the same year – almost ten years later, the young company presented the first field service -suitable pipe return gun. In 1901 the company bought the ammunition and weapons factory of the Dreyse weapon farmer. But the activity in the Armaments At first had a quick end: As early as 1919, the business had to be switched to the production of civil products due to the Versailles Treaty and the focus was on the production of locomotives, steam plows and office machines. This change of production, many strikes and the supply bottlenecks after the First World War presented the company with a major challenge, so that a bond worth 25 million marks was issued in 1920. Just a year later, however, the Rheinmetall was allowed to resume its work in the armaments industry. In 1925 the German Reich took over the majority of the equity.
Under this main part of the part, the Rheinmetall took over the locomotive farmer August Borsig GmbH in 1933 as a future armaments production facility in Berlin, in 1936 the two companies merged into “Rheinmetall-Borsig AG”. During the Second World War, armaments production in the company was more and more controlled by the Wehrmacht, according to the company website, and the production locations were heavily bombed due to the role that the Rheinmetall played for the German military.
First steps in mechanical engineering and automotive technology
At the end of the Second World War, Rheinmetall was again imposed on a ban on weapons production and – as the company writes on its website – one tried to do a little successful civil production program. The ban on production ended in 1956 and the majority of the Rheinmetalls was taken over by the Röchling Group, which Borsig AG sold and instead bought the steel group Salzgitter AG. The company resumed military technology and was renamed the “Rheinmetall Berlin AG”. In the following years, the company recovered more and more into weapons production and several acquisitions followed in this area. At the same time, the Rheinmetall took the first steps in the areas of mechanical engineering and electronics from 1958.
Finally, in 1979 the company delivered the first fighter tank (Leopard 2) to the Bundeswehr. The civilian divisions were then reorganized by 1981 and the mechanical engineering area was expanded with the acquisition of the mechanical engineering company Jagenberg. Five years later, the carburetor manufacturer Pierburg GmbH was also bought up and the automotive technology area was also expanded. From 1989 the company placed even more emphasis on diversification of civilian areas and – due to the case of the Berlin Wall – especially in security technology.
Rheinmetall expanded and shows more presence on the international market
In the 1990s, further takeovers and the expansion of office systems, communication technology, armored vehicles, safety technology and automotive industry followed. In this context, the PREH works were integrated into the Rheinmetall. From 1995, the company also increasingly focused on the international market and expansion and strengthened its activities in the United States. In 1996 it was renamed the “Rheinmetall AG” and in 1997 the company took a significant step for its presence in the automotive industry with the acquisition of the majority of Kolbenschmidt AG (later: KSPG AG), so that in 2003 it was even able to take over the Mazda Motor Corp piston business.
In the mid-2000s there were major changes when the Röchling group sold their majority stake in the Rheinmetall at over 70 institutional investors and 18 million preferential shares of the Rheinmetall were converted into voting ordna. In the following years, the Rheinmetall was repeatedly able to conclude delivery contracts with the Bundeswehr and consolidate its position as the market leader in various areas with further takeovers. According to its own statements, the company today has around 60 subsidiaries.
Rheinmetall wants to be CO2-neutral by 2035
In 2010 Rheinmetall and MAN NURGEFARISE AG together founded the Rheinmetall Man Military Vehicles GmbH (RMMV), which today operates the entire range of protected and unprotected vehicles for international armed forces. In the United States, Rheinmetall merged with General Dynamics for Defense ammunitions internationally in order to have a say in the armaments industry.
The Rheinmetall has been restructured several times over the years. In Corona year 2020, the group imported medical masks from China for the federal government and was involved in the hydrogen area as a solution to achieve the climate goals. Despite the pandemic, Rheinmetall AG’s turnover was 5.4 billion euros in 2020, in 2021 it was even more with 5.7 billion euros and in 2022 the value of the Rheinmetall shares with the Russian attack on Ukraine and an increased need for weapons in Germany and other EU countries rose by around 60 percent. Due to the rapid development in recent years, the group was included in the DAX on March 20, 2023. In 2024, the group’s turnover was even around 9.8 billion euros.
Further changes are in the area of sustainability: “The focus on sustainability is an integral part of the Rheinmetall strategy. The company wants to achieve CO2 neutrality by 2035,” writes the Rheinmetall on its website.
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