Augsburg-based defense supplier Renk anticipates a swift launch of new tank procurement processes by the German government, potentially leading to initial contracts for the company as early as the beginning of next year. According to CEO Alexander Sagel, in remarks to the Handelsblatt, the company’s simulations suggest the Bundeswehr (German Armed Forces) will require up to 1,000 new wheeled armored vehicles by 2035, with an additional 600 new main battle tanks and infantry fighting vehicles potentially added to that figure.
To fulfill these anticipated orders, Renk plans to invest approximately €500 million in the coming years, focusing on capacity expansion and research and development initiatives. Renk holds a leading global market position for military precision gears, outside of Russia and China. These critical components are integrated into German Leopard, Boxer and Puma tank models, as well as US Bradley and Israeli Merkava tanks.
Beyond armored vehicles, Renk also supplies gears for naval frigates and corvettes. While the United States Armed Forces currently represent the company’s largest customer base, accounting for roughly 30% of Renk’s revenue, the announced increases in defense budgets by European NATO member states and the expected large-scale orders for new tanks and armored vehicles are shifting the balance.
“We are now concentrating on Germany. Here, we can best assess the programs and funding” stated Sagel. “The German share of Renk’s revenue will definitely increase significantly”. Sagel emphasized the importance of accelerated procurement processes, expressing hope that the German government swiftly concludes framework agreements with industry partners.