Defense industry presents itself in Paris

Highly decorated military men roam the corridors with their staffs from all over the world. But no one is from China or even Russia. Manufacturers from France, the USA and Germany have the largest stands. Rheinmetall, Daimler Truck and Hensoldt have spread out on the outdoor area. The tank builder KNDS, which arose from the merger of Munich-based Krauss-Maffei Wegmann (KMW) and the French state-owned company Nexter, has the largest presence.

The Franco-German company spreads out its arsenal over an area the size of a soccer field. Armored personnel carriers lined up alongside self-propelled howitzers and main battle tanks, painted mud brown (France) or green (Bundeswehr) depending on the nation. KNDS exhibited three types.

Between the Leclerc from France and the German Leopard 2 stands an in-house development that combines the chassis from KMW with the turret from Nexter. But it is little more than a draft for which there have been no buyers to this day.

Rheinmetall surprises the industry with the new Panther

KNDS exhibits a lot of metal, but the big show belongs to Armin Papperger. The head of Rheinmetall flew to Paris straight from vacation. Tanned, gray hair recently parted, without a tie, the man in his mid-fifties presents the KF 51 Panther main battle tank.

>> Read also: “Superior to the Armata”: Rheinmetall praises the Panther as a weapon against Russia’s strongest tank

It’s a coup that’s been talked about a lot at the fair. The mood fluctuated between “brave, someone is finally doing something” to “what a provocation!” Papperger challenges KNDS.

For him, the vehicle is the legitimate successor to the Leopard 2, which Rheinmetall is involved in building, but which essentially comes from KMW. “The Panther is a game changer,” promises Papperger.

With its new paint finish, which resembles a green patterned pixelated test image, the Panther looks more modern than the mud-colored KNDS models. With its more powerful armor and armament, the Panther can take on the modern Russian T-15 Armata tank. At least that’s what Papperger promises at the presentation.

During his visit, Army Inspector Alfons Mais was only superficially interested in the Panther. A new main battle tank is not included in the special budget of over 100 billion euros. Mais needs ammunition, logistics, and protective gear for its soldiers. The Bundeswehr is blank, a business for Papperger.

Papperger calculates that annual sales of around 1.5 billion euros are likely to be necessary for ammunition alone, and around one billion euros for logistics vehicles. Growth is likely to be 20 percent in the future, sometimes even 25 percent.

“The interest is huge,” he says. The delegation from Ukraine had announced for Wednesday. It is an important visit, precisely because Germany has been criticized for its reluctance to supply heavy equipment. It will still be a friendly meeting, says the Rheinmetall boss in advance.

His company has offered Ukraine extensive material, including Marder and Leopard 1 tanks. Papperger would also supply modern tanks. “It’s a tragedy that’s happening,” he says. “We want to help there.”

However, the federal government is blocking exports. Neither Marder nor Leopard are on the federal government’s list on the basis of which Kyiv can buy from Germany’s armaments companies.

The example of the Düsseldorfer shows how the situation has changed. Until the annexation of Crimea in 2014, Moscow was still a partner.

Rheinmetall was supposed to deliver training centers for the Russian armed forces at a price of 100 million euros each. At that time, Papperger was allowed to sit in the T-14 Armata tank, which is still under development, as he reports. Now, with the Panther, he has had a vehicle designed to destroy the Armata.

The Germans are carefully observed

In general, the Germans are a central theme at the fair – rather the turning point that Chancellor Olaf Scholz proclaimed in his speech after the attack on Ukraine. “Germany has finally woken up,” says a representative of a US defense company. Without strong armed forces, the country cannot ensure security.

In Germany, however, the prospect of rearmament is likely to still unsettle many people. After all, the manufacturers have so far been considered sleazy companies, as they live off the business of death. However, the picture changes in view of the war crimes committed by Russian soldiers in Ukraine. The companies are now proudly presenting their weapons in Paris. “We’ve been accepted since the outbreak of war,” says an armaments manager.

In France, people are less afraid of contact with the subject. In front of the door of the fair, the organizers point out on signs that no posters or whistles are allowed to be brought onto the fairgrounds. But there are no protests anyway.

In his “Zeitenwende” speech in February, Scholz announced investments of 100 billion euros in better equipment for the Bundeswehr. The army, navy and air force are to be upgraded, and Germany should also have a functioning air defense system as quickly as possible. The country is blank there. “With all available systems, the Bundeswehr cannot even protect Berlin,” says a military officer.

Air defense negotiations ongoing

It is likely to be one of the most lucrative armaments deals for which at least two companies are applying. Israel Aerospace Industries is the federal government’s first choice; a delegation from Berlin has already visited IAI to take a look at the system.

With a combination of radar, sensors and defense missiles, the state-owned company can provide an effective system for protecting a country, as sales manager Yehudi Davidovitch reports in Paris, without going into detail about a specific project. Systems from local manufacturers such as those from radar manufacturer Hensoldt could be integrated without any problems.

The fact that, according to industry circles, this is already being negotiated shows how great the concern is. However, a quick solution will be difficult. “We’re busy for years,” said Davidovitch. But if talks between governments are successful, then one system could be preferred. “Then we could deliver in two years.”

Lockheed Martin is also hoping for business. The Americans have their stand right next to that of the Ukrainian Defense Ministry. With Skykeeper, Lockheed Martin has developed a system that could effectively protect the airspace over Germany, as a company representative asserts. Hensoldt radars or Diehl rockets could be integrated.

For Israel and the USA, Germany has played a subordinate role in this area in recent years. The Bundeswehr shrank, and new equipment was only occasionally purchased. This also applied elsewhere: “With the corona pandemic, we had prepared ourselves for years of falling armaments budgets, now business is literally exploding,” says an armaments representative from Anglo-Saxon countries. Some had already thought of dissolving their branch in Berlin.

A lot has changed with Scholz’s speech. There’s the greed for profits, but it goes beyond that. If you listen to people from the industry, you will also hear joy about a new recognition. “When I used to say where I work, some people turned away,” says a boss of a larger armaments company. “Today, people listen to me.”

Generals already fear a war in the Arctic

The Eurosatory is a sales fair, the exhibitors do not show the dark side of the war. A plastic head with a bullet hole can only be seen at the stand of one designer, just as a warning against choosing the wrong helmet. No company shows blood or even corpses.

But the war is present. Military leaders from the USA, Finland and France have gathered on the edge of the knives. Her topic is the preparation for a war in the Arctic. The region is rich in raw materials, around a third of all gas deposits are located under the ice sheet.

A war with Russia is suddenly very close. Referring to the experience of the Winter War with Russia in 1939 and 1940, former Finnish commander-in-chief Seppo Toivonen explains why his country needs a strong militia and why it now wants to join NATO.

France is also preparing for operations in the eternal ice. The country must be present there and is adding a military component to its Arctic strategy, which was only decided last year, said Major General Pierre-Joseph Givre. He is responsible for the military doctrine of the Grande Nation – and he has a clear goal: “It is important for us to put pressure on Russia in the region.”

Indeed, Moscow has increased its presence in the Arctic by increasing its military there. “The situation is calm at the moment because all troops have been transferred to Ukraine,” said Toivonen. But Russia has its eye on the Arctic, the generals are certain.

More: Rheinmetall boss Armin Papperger on the Bundeswehr: “We could only resist an aggressor for a few days”