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Rheinmetall moves to strengthen its competence in defence technology


In response to essential strategic consolidation moves in the European arms industry, Rheinmetall is bringing together its defence technology competence in the ground forces sector ­ weapons, ammunition, systems and equipment (Rheinmetall Industrie AG) ­ and defence electronics (STN Atlas Elektronik GmbH). In a major internal consolidation reflected both organisationally and in terms of legal corporate form, Rheinmetall is creating a modern defence entity, which, as a system supplier and single-source provider of core technologies (electronics, weapons and ammunition, and automotive engineering), will be a match both internally and externally for the increasingly tough international competition ­ particularly from US companies.
;After the takeover of a majority holding in STN Atlas Elektronik in 1997, the next rational move for Rheinmetall is to combine its defence technology activities, thereby expanding its strategic potential and intensifying its existing system-competence in the field of defence products.
;The aim of Rheinmetall's far-reaching strategic overhaul is to square up to the tight budgetary situation by creating larger units with the critical mass necessary to survive in today's tougher environment. Moreover, the system engineering capabilities of the hitherto separately managed divisions Defence Technology and Defence Electronics will be secured and further reinforced, particularly with respect to land systems; customer confidence in Rheinmetall's long-acknowledged technical competence will be further enhanced; cost structures will be optimized; and the value added chain augmented both vertically and horizontally.
;Starting July 1, 1999, under the banner of New Defence Technology Enterprise Rheinmetall DeTec AG (Defence Technologies), the following corporate divisions will be united and co-ordinated in several stages:
;- Weapons and Ammunition : (Rheinmetall Waffe + Munition GmbH)
;- Systems and Equipment : (MaK System GmbH) and the divisions combined in STN Atlas Elektronik GmbH (Naval Systems, Land and Airborne Systems, Simulation Systems), as well as STN Atlas Marine Electronics (Euro Marine Electronics GmbH).
;This will result in a tighter management structure, as well as in result-oriented corporate units that are close to the market, capable of working together and able to operate in a lean, efficient manner. There has been no change in the shareholder structure of STN Atlas Elektronik GmbH.
;In 1999, Rheinmetall DeTec AG will produce a turnover of approximately DM 3.1 billion (1,58 billion euro), and employ a workforce of 8,500.

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Rheinmetall moves to strengthen its competence in defence technology