Home / Business and Politics / Rheinmetall: From Ammunition to Autonomous Ships with a View of the Adriatic

Rheinmetall: From Ammunition to Autonomous Ships with a View of the Adriatic

Image by: foto Shutterstock

The German technology giant Rheinmetall, headquartered in Düsseldorf, is expanding its operations by acquiring the military division of Lürssen Group, known as Naval Vessels Lürssen (NVL). This move marks a significant entry for Rheinmetall into the shipbuilding sector, which will broaden its production offerings beyond traditional land systems.

The transaction, expected to be finalized in early 2026, involves the acquisition of all NVL locations and employees, who will be integrated as a separate division within the Rheinmetall Group. However, the operations of all companies within the Lürssen group will continue without any changes, including those in Croatia, at least for now.

NVL Croatia has been operating in Rijeka for several years, employing around 200 engineers who primarily work on the design and engineering of special high-performance vessels and on the development of innovations in the maritime sector, from customized and cost-effective solutions in shipbuilding to the development of advanced technologies and autonomous maritime systems.

– For employees in Croatia, everything remains the same. The Lürssen and NVL teams continue to collaborate closely on joint projects, with a focus on quality, deliveries, and commitment to common goals. The integration process of NVL into Rheinmetall will take place gradually, while Lürssen will fully focus on building civil megayachts and developing new technologies in that segment, which will further strengthen and position the companies in Croatia – stated representatives from the Lürssen group.

However, although the Croatian division is currently engaged only in civil shipbuilding, this does not mean that this will not change in the future, especially since Rheinmetall is primarily a company known for its products for the military industry.

Even this move, the acquisition of Lürssen Group, speaks volumes about the company’s strategic direction to engage in the maritime defense industry, and in this context, the strategic position of Rijeka and the Adriatic Sea where Lürssen operates is also important. The Lürssen Design Center Kvarner has so far provided high-quality engineering and design services for all Lürssen shipyards in Germany, from the design of new ships to modifications and complex conversions of existing vessels. Although Lürssen is known for luxury megayachts, its presence in Rijeka allows the company to develop advanced technologies, including autonomous maritime systems and the use of sustainable fuels, which can be effectively utilized for military purposes.

Turbulent History

It is worth recalling the turbulent history of Rheinmetall, which was founded in 1889 as ‘Rheinische Metallwaaren und Maschinenfabrik Actiengesellschaft’ in Düsseldorf. During World War I, it became one of the largest arms manufacturers in the German Empire, employing around eight thousand people at that time. By the end of the war, that number had increased to 48 thousand, of which there were even nine thousand women. After the war, due to the provisions of the Treaty of Versailles, arms production was halted, and the company reoriented itself to produce civilian products such as locomotives, agricultural machinery, and office equipment.

In 1937, under the Nazi regime, Rheinmetall became the second-largest arms manufacturer in the Third Reich, just behind the German company Krupp. By 1939, the company employed again around eight thousand workers, and by the end of the war, the number of employees had risen to nearly 85 thousand, including a large number of forced laborers from Eastern and Southeastern Europe, including Croatia.

Ban on Production

After the end of World War II in 1945, Germany was defeated and divided, and one of the conditions of peace and division was a ban on the production of weapons and military equipment. This meant that Rheinmetall was not allowed to produce cannons, ammunition, tanks, or any other military systems. Factories had to either cease military production or reorient themselves to civilian products.

As the facilities were destroyed or damaged during bombing by Allied airstrikes, the factory could not continue operating, at least not at the previous scale, and only the branch in Düsseldorf continued to operate to some extent, focusing exclusively on civilian production and under strict control by the Allies and the state itself. Around 1956, the company was privatized and taken over by the Röchling group, a large German industrial group, and it resumed producing military systems and manufacturing weapons and armored vehicles for the Bundeswehr and NATO allies.

The Largest in the World

After the Russian invasion of Ukraine, Rheinmetall experienced a significant increase in demand for military equipment, especially for ammunition and armored vehicles. At the same time, the German government announced a special fund of 100 billion euros for the renewal of the Bundeswehr, which further increased orders for Rheinmetall. In 2023, they acquired the Spanish ammunition manufacturer Expal for 1.2 billion euros, thereby increasing their ammunition production, and a new production line for 20–35 mm ammunition was opened in the German state of Lower Saxony, with plans to increase production to 1.1 million pieces annually by 2027. This project has an investment of 500 million euros, will create 500 jobs, and upon completion, it is expected to be the largest ammunition factory in Europe, and even in the world.

They have also expanded into Ukraine and Lithuania, establishing Rheinmetall Ukrainian Defence Industry in Kyiv, with plans to produce armored vehicles and maintain systems for the Ukrainian armed forces, and a new factory for the production of 155 mm artillery ammunition has been opened in Lithuania in partnership with the Lithuanian government.

Collaboration with DOK-ING

In addition to Lürssen, Rheinmetall is already present in Croatia. Namely, the Croatian technology company DOK-ING and the German conglomerate, a leading European manufacturer of weapons and military equipment Rheinmetall, signed a Memorandum of Understanding (MoU) in Berlin to establish a joint venture aimed at becoming a market leader in the sector of unmanned combat and non-combat systems (Unmanned Ground Systems-UGS). The strategic collaboration between DOK-ING and Rheinmetall aims to develop an unmanned system focused on counter-mobility capabilities, with plans to develop unmanned systems for various purposes in support of combat tasks in the future. The first system demonstrator is expected to be presented this year.

Although the Lürssen center in Rijeka currently focuses on civil shipbuilding, the development of advanced technologies and autonomous systems can open opportunities for expansion into military shipbuilding, and in addition, the combination of engineering capacities in Rijeka and collaboration with DOK-ING can enable the development of integrated solutions that connect land and maritime defense systems. In other words, the sky and the sea are the limit.

Tagged: