US and EU defense companies are increasing production to meet the needs of the Ukrainian Armed Forces.
The largest arms manufacturers in the US and the EU are increasing production of military equipment, weapons and ammunition to meet demand that has increased due to Russia’s war against Ukraine, according to The Wall Street Journal.
The desire to increase production occurs both in the US, the EU and in Asia. The Pentagon has given Ukraine more than $17 billion to buy weapons and services, much of it from existing stocks. He also won about $3.4 billion in new contracts to resupply domestically and with allies, the article said.
Rising demand is accompanied by supply chain disruptions and shortages of workers and supplies. Some of the most sought-after weapons, such as the shoulder-fired Stinger anti-aircraft missiles, have already been phased out, forcing companies to quickly find solutions.
US restocks Stinger and Javelin
The American conglomerate Raytheon Technologies Corporation, which produces, in particular, the Stinger man-portable anti-aircraft missile system, disassembled the old MANPADS into parts and returned retirees to work to increase production capacity . The corporation has not received a state order for shells since 2008.
Another US company, L3Harris Technologies Inc., which was supposed to supply Ukraine with $200 million worth of equipment, said it was taking chips from old radios to assemble new equipment. in communication.
The US military-industrial corporation Lockheed Martin Corporation is doubling the production of Javelin anti-tank missiles, which it does in conjunction with Raytheon, and increasing the production of HIMARS launchers and GMLRS missiles by 60%.
Germany gets shells for tanks
The German concern Rheinmetall AG, one of Europe’s largest manufacturers of military equipment, last week bought its Spanish competitor Expal Systems SA for 1.2 billion euros to increase its ammunition production capacity.
“Customers will award contracts to companies with appropriate capacity,” said Armin Papperger, CEO of the concern.
Rheinmetall expects big contracts in the new year. The company also doubled its annual production of tank ammunition from about 70,000 to 140,000 a year, Papperger said. The company is also producing 110,000 artillery shells this year, up from 70,000 last year. The production of mortar shells also doubled.
Rheinmetall also increased the production of medium-caliber shells to 2.2 million per year from 1.2 million and military trucks from 2.5 to 4 thousand units.
“This is a very, very clear signal that in the next 10 to 15 years, investment programs are needed to ensure the security of all of Europe,” said Papperger, commenting on the purchase of Expal Systems.
Factories are increasing capacity
EU manufacturers are urging governments to issue new contracts to support their efforts to boost production. In particular, the European defense industry company KMW+Nexter Defense Systems NV, an ammunition specialist and manufacturer of military vehicles and other equipment, is still waiting for these contracts to materialize to increase its own operations.
“With more orders, KNDS will be able to adjust its production capacity. But based on speeches and statements alone, we cannot do that,” said Managing Director Frank Haun.
Swedish automaker Saab has expanded its production capacity in recent years amid heightened tensions with Russia, CEO Mikael Johansson said. In addition to supporting this growth, the company has hired 500 new employees worldwide and is investing in new manufacturing technologies to improve efficiency. The company can further increase productivity by increasing the number of shifts for workers on its shop floor, Johansson said.
The growth of shares of defense companies
European defense budgets, which have been declining for decades, have gradually increased since Russia’s annexation of Crimea in 2014, according to The Wall Street Journal. Russia’s invasion of Ukraine in February provided even more immediate impetus. Since January 1, Rheinmetall shares have risen 115%, while Saab and British BAE Systems PLC have risen 30% and 44%, respectively.
US manufacturers have long supplied equipment for export and for ground warfare around the world, but the Russo-Ukrainian war has given their parts a smaller boost. Lockheed shares are up 36% since the start of the year. Shares of General Dynamics rose 22% and Raytheon rose 12%.
NATO will increase production for Ukraine
NATO Secretary General Jens Stoltenberg also said this week that the North Atlantic Alliance has exhausted most of its own stockpile of weapons and ammunition and needs to work with industry to boost production for Ukraine.
According to him, the alliance needs to strengthen its military potential to support Kyiv in the long term.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.