Rheinmetall Acquires Shipyards in Germany and a Branch in Rijeka

Deutsche Welle reported on Tuesday that the largest German arms manufacturer Rheinmetall is making a significant entry into the maritime business by announcing the acquisition of several shipyards from the German company Lürssen in northern Germany, as well as the company’s branch in Croatia.

– The largest German arms manufacturer, Rheinmetall, is acquiring the maritime sector of Lürssen, which includes the German shipyards Blohm + Voss, Norderwerft in Hamburg, Peene-Werft in Wolgast, and Neue Jadewerft in Wilhelmshaven. This significantly changes shipbuilding in northern Germany: Rheinmetall from Düsseldorf is making a substantial entry into the maritime sector and is taking over the entire part of the company Lürssen, known as Naval Vessels Lürssen (NVL). With this, Rheinmetall becomes the owner of Lürssen’s locations in Egypt, Brunei, Bulgaria, and in Croatia, in Rijeka – DW states.

Rheinmetall announced that the company is also taking over approximately 2,100 employees worldwide.

DW adds that NVL employs about 40,000 people at 174 locations, including the one in the Rijeka port, that last year NVL generated revenue of about one billion euros , and that both parties agreed not to disclose the purchase price.

DW also notes that NVL currently has orders worth about seven billion euros, supplying the German Navy as well as foreign states, and that there is additional growth potential in the area of autonomous ships, or floating drones.

Withdrawal of Lürssen from Croatia

Regarding operations in Croatia, it is important to emphasize that Rheinmetall is exclusively taking over the military shipbuilding segment of Lürssen – Naval Vessels Lürssen (NVL), which includes the Rijeka engineering company Lürssen Design Center Kvarner, while the civil business of the Lürssen family, such as the construction of megayachts and tourism investments through Gitone Adriatic (Liburnia Riviera Hotels, Toplice Sveti Martin, Rijeka marina Porto Baroš), remains separate and outside this acquisition.

As the Lürssen family has gradually withdrawn from Croatian investments in recent months, for example through the announced sale of Liburnia Riviera Hotels in which it holds a 71.24% stake, this sale of the military shipbuilding sector to Rheinmetall is part of a broader restructuring of their business.

Namely, the Lürssen company will focus on the production of private megayachts, and this family business has justified the sale of the military sector by the deteriorating security situation. Lürssen will henceforth focus exclusively on the construction of civil megayachts, DW states.

Finalization of the transaction in early 2026.

The purchase still needs to be approved by the antitrust commission, and Rheinmetall and Lürssen hope that the deal will be concluded in early next year, DW reported.

They state that Rheinmetall aims to expand its business through the acquisition of shipyards, as it has not previously produced ships independently, but has already collaborated with the navy, for example in the area of naval guns and laser modules, while NVL primarily produces corvettes.

On the other hand, Defense Minister Ivan Anušić stated in March this year that there is a willingness to build corvettes in domestic shipyards.

They emphasize that since the beginning of the Russian aggression against Ukraine in February 2022, the value of Rheinmetall’s shares has increased twentyfold and that the company is one of the most important suppliers of weapons for Ukraine, with part of that assistance being financed by the German government.