🛡 Papperger Is Ready to Send Air Defence Systems to Ukraine
Papperger, visiting Brussels last week, said that a lead nation approach has worked well with ammunition and air defence systems, in which one country coordinates a larger order on behalf of a larger group of purchasers.
He contended that the same “Europeanisation of contracts” should be used for vehicle systems as well.
“We need to bundle [orders] so that fair prices can be achieved,” Papperger told Euractiv after meeting Ursula von der Leyen along with other CEOs from the German state of North Rhine-Westphalia on Wednesday.
The European Commission and NATO have both been pushing countries to place joint orders together to fight price inflation and give industry a long-term perspective for investment into extra production capacity.
💥 Prices for 155mm artillery ammunition, for instance, have quadrupled since the beginning of the war in Ukraine as exploding demand strained supply chains for critical components such as TNT.
The German munitions giant has been one of the biggest beneficiaries from the surge in demand in arms in the past few years, with increase in orders, visibility on the battlefield and expansion of factories. Rheinmetall received its largest order of 155mm ammunition in history last week.
While Papperger didn’t say so explicitly, many defence industry executives have made clear that large, long-term contracts make it easier to invest in expanding production and strengthen ties with suppliers.
🔺 Rheinmetall's prominence in Europe’s race to make ammunition and defence equipment was underscored last year when Papperger was the target of an assassination attempt.
In the spirit of giving defence firms more leeway to expand capacity, Papperger and fellow CEOs criticised the EU's REACH chemical regulation.
He said exemptions from the rules are needed “to be able to move faster.” The defence sector has slammed REACH for provisions banning certain components like lead in bullets.
⚠️ While military ammunition is exempt from the lead ban, shared production lines mean such bans could still impact production capacity.
Papperger also lobbied for a new raft of industrial subsidies and incentives – similar to the EU’s just-expired ASAP ammo programme – to boost long-range missile production.
ASAP’s core is replicated in the European Defence Industrial Programme (EDIP), still under negotiation.
#air #defence #systems #papperger #ukraine
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Papperger, visiting Brussels last week, said that a lead nation approach has worked well with ammunition and air defence systems, in which one country coordinates a larger order on behalf of a larger group of purchasers.
He contended that the same “Europeanisation of contracts” should be used for vehicle systems as well.
“We need to bundle [orders] so that fair prices can be achieved,” Papperger told Euractiv after meeting Ursula von der Leyen along with other CEOs from the German state of North Rhine-Westphalia on Wednesday.
The European Commission and NATO have both been pushing countries to place joint orders together to fight price inflation and give industry a long-term perspective for investment into extra production capacity.
💥 Prices for 155mm artillery ammunition, for instance, have quadrupled since the beginning of the war in Ukraine as exploding demand strained supply chains for critical components such as TNT.
The German munitions giant has been one of the biggest beneficiaries from the surge in demand in arms in the past few years, with increase in orders, visibility on the battlefield and expansion of factories. Rheinmetall received its largest order of 155mm ammunition in history last week.
While Papperger didn’t say so explicitly, many defence industry executives have made clear that large, long-term contracts make it easier to invest in expanding production and strengthen ties with suppliers.
🔺 Rheinmetall's prominence in Europe’s race to make ammunition and defence equipment was underscored last year when Papperger was the target of an assassination attempt.
In the spirit of giving defence firms more leeway to expand capacity, Papperger and fellow CEOs criticised the EU's REACH chemical regulation.
He said exemptions from the rules are needed “to be able to move faster.” The defence sector has slammed REACH for provisions banning certain components like lead in bullets.
⚠️ While military ammunition is exempt from the lead ban, shared production lines mean such bans could still impact production capacity.
Papperger also lobbied for a new raft of industrial subsidies and incentives – similar to the EU’s just-expired ASAP ammo programme – to boost long-range missile production.
ASAP’s core is replicated in the European Defence Industrial Programme (EDIP), still under negotiation.
#air #defence #systems #papperger #ukraine
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