“We are planning expansion through new service and production plants, primarily in eastern Europe,” Renk CEO Alexander Sagel told Der Spiegel, adding the group aims to “expand service and assembly capabilities in Poland.”
Renk plans initially to service tank gearboxes, engines and chassis, then begin producing new equipment, Sagel said.
“In this way we will enable customers in Poland, Ukraine and the Baltic states to shorten response times […] and help maintain readiness,” he said. Over the next four to five years, Renk wants to invest EUR 500 million to expand production capacity and fund research and development.
Sagel said Renk supplies the German navy and almost all Western tank makers, including companies such as KNDS, Rheinmetall and Leonardo. He called Poland “an ideal place” to stay closer to regional customers.
“In the event of a tank breakdown in Poland during exercises or in Ukraine during fighting, it is difficult to transport it 2,000 km to a repair point and then, after half a year, deliver it back,” he said, adding Polish sites could also serve the Baltic states.
Der Spiegel reported that before the start of Russia’s full-scale war against Ukraine, Renk produced 200-300 gearboxes a year, and that annual output is to rise to 800 by the end of 2026. It said the company plans to triple revenue versus 2024.
Sagel said Germany’s armed forces had not seen a significant improvement in readiness over the last four years despite higher spending, adding: “Only speed, speed, speed matters.”
“Golden times” for German defense sector
Separately, Sueddeutsche Zeitung wrote that Germany’s arms industry is enjoying “golden times” as domestic demand rises and a “war mood” persists in Europe. It said Germany spent about EUR 100 billion on defense in 2025, about double the 2021 level, and that most of the money spent on armaments goes to domestic firms.
Citing data from the Kiel Institute for the World Economy, the newspaper said that of roughly EUR 170 billion in booked spending for 2020-2025, about 109 billion euros went to German companies and EUR 41 billion to foreign firms, with EUR 19 billion not broken down.
Sueddeutsche Zeitung also reported that German arms exports have risen by almost 50% since February 2022, with Germany moving from sixth to fourth among the world’s biggest arms exporters, behind the United States, France and China.
(jh)
Source: PAP