FRANKFURT (Reuters) – German military equipment maker Rheinmetall’s chip supplies should last five years after it spent 500 million euros ($519 million) this year to ramp up inventory of semiconductors and electronic components, Rheinische Post reported on Friday.
Rheinmetall’s share price has almost doubled since Russia’s invasion of Ukraine after which Germany said it would ramp up its traditionally low military spending by 100 billion euros.
At the same time, the booming demand for military equipment is not a reason for Rheinmetall to sell its automotive unit, which supplies carmakers with engineering parts such as pumps and valves, Chief Executive Armin Papperger told the newspaper.
“It is true that defense technology is gaining in importance. But we have no plans to exit our civilian activities,” Papperger told Rheinische.
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(Reporting by Zuzanna Szymanska; Editing by Kirsten Donovan)