Ukraine war pushes German arms coy Rheinmetall into 40 leading shares on DAX index

 

BERLIN – German armaments maker and engineering company Rheinmetall  will be included in DAX index of 40 leading shares on the Frankfurt Stock Exchange on Monday, pushing out dialysis specialist Fresenius Medical Care (FMC).

Rheinmetall’s market capitalization is currently put at €10.4 billion ($11.2 billion). Its share price  in the DAX has more than doubled since Russia invaded Ukraine in February last year.

The company makes the cannon on the Leopard 2, a tank in service with several European armies which is in the process of being delivered to Ukraine. It also makes the cannon on the Panzerhaubitze 2000, a long-range howitzer also used by the Ukrainian military.

The company is predicting rapid growth in 2023 as European countries boost their military spending in response to the invasion.

“We want to participate with our products in increasing budgets for military capacities,” chief executive Armin Papperger said from Dusseldorf, where the company is headquartered, on Thursday.

Rheinmetall had an average staff complement of 24,800 in 2022, around 1,100 more than in the previous year. Papperger is planning to increase the number by 3,000 this year.

FMC will in future be included in the MDAX index