Augsburg-based Renk, a leading supplier of defense technology, anticipates a swift launch of new tank procurement orders by the German government. According to CEO Alexander Sagel, speaking to the Handelsblatt, initial contracts for the company could materialize as early as the beginning of next year.
Renk’s projections, based on internal simulations, suggest the German armed forces (Bundeswehr) will require up to 1,000 new wheeled armored vehicles by 2035. In addition, the demand could extend to an extra 600 new combat and infantry fighting vehicles.
To accommodate these potential orders and bolster its capabilities, Renk plans to invest approximately €500 million over the coming years. This investment will be directed towards expanding production capacities and intensifying research and development efforts. Renk currently holds a globally leading position in the manufacture of military precision gears, a critical component in German tanks like the Leopard, Boxer and Puma, as well as in US Bradley and Israeli Merkava models.
The company’s expertise also extends to supplying gears for naval vessels like German frigates and corvettes. While the United States remains Renk’s largest customer, accounting for roughly 30% of its turnover, the strategic landscape is shifting. The anticipated increase in defense spending by European NATO member states, coupled with the prospect of substantial orders for armored vehicles, is reshaping market dynamics.
“Currently, our focus is on Germany, where we can assess the programs and funding most effectively” stated Sagel. He anticipates a significant increase in Germany’s contribution to Renk’s overall revenue. Sagel underscored the urgency of the situation, advocating for a rapid conclusion of framework agreements between the German government and industry partners to facilitate swift procurement processes.
