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Germany’s defence firms need steelmakers to help fuel the boom

Marilen Martin and Laura Alviž / Bloomberg
Marilen Martin and Laura Alviž / Bloomberg • 5 min read
Germany’s defence firms need steelmakers to help fuel the boom
“Defence capability and security are collective goods. You can’t expect individuals to take care of this in their own private economic interests.” Photo: Bloomberg
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German defence manufacturers including Rheinmetall are urging domestic steelmakers to ramp up production of military-grade metal, to secure their long-term ability to make armored trucks and tanks.

Their call comes as European nations including Germany boost defence spending in response to Russia’s war in Ukraine and US President Donald Trump’s plan to scale back the US military’s involvement in the region. German defence firms currently rely primarily on Swedish steelmaker SSAB for their supply, exposing them to the risk of a shortfall as demand intensifies.

So far two producers — Salzgitter and Germany’s oldest joint-stock company AG der Dillinger Hüttenwerke — are publicly heeding the call to strengthen the domestic supply chain. Others remain hesitant, underscoring how difficult it is to quickly re-tune in such a capital-intensive industry.

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