German arms maker Rheinmetall is booking record profits from NATO contracts yet is quietly expanding in non-NATO markets—even in states close to Russia. In India’s Himachal Pradesh the firm and local partner SMPP are building one of the country’s largest ammunition plants; a framework deal took effect in 2023. The production lines come from Rheinmetall Denel Munition (RDM) in South Africa, a subsidiary that has already exported nearly 40 shell- and bomb-factory systems to countries such as Egypt, Saudi Arabia, Argentina and China.
Routing sales through foreign affiliates lets the group bypass German export rules, leaving no oversight of where the ammunition ultimately lands. Activists accuse Rheinmetall of putting profit before human rights and fuelling conflicts. A promised German Arms-Export Control Act that could have restricted offshore ventures collapsed with the “traffic-light” coalition—just as Rheinmetall’s share price has risen ten-fold since Russia’s 2022 invasion of Ukraine.