The defense group Rheinmetall is not currently in talks with Volkswagen regarding a conversion of the automaker's Osnabrück facility from civilian to military production.

At present, Rheinmetall has sufficient in-house capacity to fulfill existing orders, CEO Armin Papperger said Thursday at the Association of Foreign Press in Germany. However, he noted that this situation could change should the company receive additional large-scale contracts. During a visit to Volkswagen's Osnabrück plant, Papperger said he had already determined that certain components there would be suitable for military goods production.

Rheinmetall is gradually shifting parts of its civilian automotive production towards the rapidly expanding military sector. The group could also take over facilities from automakers such as Volkswagen if the conditions were right, Papperger has previously stated.

The defense industry has been awarded multi-billion euro contracts following Russia's invasion of Ukraine. As a result, Rheinmetall is experiencing rapid growth and is investing in new plants and acquisitions. The DAX-listed company is currently expanding its portfolio with the military division of the Bremen-based Lürssen shipyard and is establishing its own naval division. However, Papperger added that further acquisitions to strengthen the business are not currently planned.

(Reporting by Miranda Murray; editing by Matthias Inverardi; edited by Ralf Banser. For inquiries, please contact our newsroom at berlin.newsroom@thomsonreuters.com (for politics and economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).