Share Price of German Tank Parts Manufacturer Renk Nearly Doubles Since February Due to War in Ukraine and Israel
Shares in German tank parts maker Renk have almost doubled since it listed on the Frankfurt Stock Exchange in February following the outbreak of land wars in Ukraine and the Middle East, as investors turned their attention to the defence industry, FT reported.
Chief Executive Officer Renk reported revenues of €926 million in 2023, up 9 percent from the previous year, and said it expects to exceed €1 billion in sales this year as orders come from around the world, including Norway, the Netherlands, and India. It proposed a dividend of €0.30 per share and urged sustainability-minded investors to invest in companies that defend a "peaceful, democratic, free world".
"Ultimately, a peaceful, democratic, free world is the foundation of sustainable development," said Renk CEO Susanne Wiegand. "This does not contradict ESG logic... otherwise no one would take care of windmills and energy transition."
The Bavarian manufacturer of gearboxes and transmissions for tanks and frigates said orders rose by almost a third to €1.3 billion in 2023, bringing its total order intake to €4.6 billion.
The company currently relies on military applications for 70% of its revenue.
European defence groups have long been frustrated by strict EU rules that dictate what activities are "sustainable" and in some cases have found it difficult to obtain financing. The European Investment Bank has come under pressure from some EU member states to change its mandate to lend to defence groups.
Wiegand, who has just returned from New Delhi, said the company plans to "empower and train local staff in India".
She confirmed that the company is in "final discussions" with the Indian government to produce parts for the next generation of the Arjun battle tank.