Agency Report –
Germany’s largest arms manufacturer Rheinmetall on Monday said it plans to take over a supplier specializing in nitrocellulose, a product used as a propellant in artillery ammunition and other firearms.
Also known as guncutton, nitrocellulose is a highly flammable compound made from a mixture of nitric acid and sulphuric acid.
So far, Rheinmetall has been producing nitrocellulose at three sites in Switzerland, Spain and South Africa, but the acquisition of supplier Hagedorn-NC will help the company “to close a strategic bottleneck in the production of propellants,” said Rheinmetall chief executive Armin Papperger.
Rheinmetall is still awaiting approval from anti-trust authorities before the takeover can be completed, the company said, without disclosing the purchase price.
Hagedorn-NC is located in the north-western German city of Osnabrück and employs around 90 people.
Hagedorn chief executive Gerd Hofmann welcomed the takeover bid, saying it would offer the company new prospects and growth opportunities.
Rheinmetall’s business has grown sharply since Russia’s invasion of Ukraine on February 24, 2022, with Germany the biggest supplier of military support to Kiev behind the United States.
Demand for artillery ammunition in particular has been soaring. Rheinmetall is the largest manufacturer of artillery ammunition in the west.
Even if the war were to end in the near future, the manufacturer expects demand to remain high, with Ukraine and NATO states expected to restock as Russia has dramatically ramped up its defence industry.
