- Launch of Rheinmetall International Engineering joint venture
- General contractor for defence industry infrastructure projects seeks to benefit from international growth potentials
- Ferrostaal brings added plus of oil and gas business
Rheinmetall AG of Düsseldorf and Essen-based Ferrostaal GmbH have joined forces to found Rheinmetall International Engineering GmbH. The joint venture responds to rapidly growing international demand for local defence technology infrastructure. Serving as either general contractor or subcontractor, the company will plan and implement turnkey industrial facilities. By cooperating with Ferrostaal, Rheinmetall is laying the groundwork for further internationalization.
“We’re pressing ahead with our strategy of internationalization, moving into new markets as a system integrator in the defence industry. Rheinmetall International Engineering is a highly significant step in this direction – and one which gives us a unique position in the industry”, declares Armin Papperger, Chairman of the Executive Board of Rheinmetall AG. “Ferrostaal is a long-established German partner, a company that’s been planning and managing the construction of industrial plants around the world for over ninety years in regions which are highly relevant to our future undertaking. From now on, we’ll be able to market our extensive array of products in combination with the creation of local production facilities. As a result, Rheinmetall will be taking part in an important market trend, since the establishment of local infrastructure is set to become increasingly important to international customers compared to regular arms imports”, he explains, adding that “our customers can now have their capex projects planned and carried out by an experienced, globally leading supplier of army technology – all from a single source.”
“For Ferrostaal this joint venture offers enormous opportunities for growth”, states Dr. John Benjamin Schroeder, Managing Director of Ferrostaal GmbH. “With Rheinmetall”, he adds, “we’re teamed with a top defence technology group with a unique range of products. Ferrostaal’s outstanding project expertise and country-specific area knowledge provide the perfect platform for generating new business in many regions around the world. What’s more, under this joint venture we’ll be able expand our traditional oil and gas business into Asia and South America.”