MUNICH Reuters - At least half of the 100 billion euro $109 billion special fund set up to modernize the German military will go to U.S. defence companies, a leading tank gear box maker, accusing Berlin of lacking a strategy for its defence industry.
I don't believe that much of the money will be left over for the German industry, said Renk Group's chief executive, Susanne Wiegand, adding that the government in Berlin did not realize the strategic importance of the defence industry.
Germany lacks a strategic compass for the defence sector. This is something the French are handling much better, she said at a journalist briefing embargoed for Tuesday.
Wiegand called for the government to use the 100 billion euro fund, not only to plug short-term holes in the German military's inventories but also to help develop technologies of the future.
Renk, formerly a Volkswagen subsidiary, is a worldwide leader in the production of gear boxes for tanks like the Leopard II.
With about 70% of its sales coming from gear boxes for tanks and navy ships, the company has gear boxes for civilian purposes such as compressors.
Three years ago, VW sold Renk to financial investor Triton for 700 million Euros, now the company is preparing for a stock market flotation.
I see the capital market as a next step in our development, but nothing has been decided yet, Wiegand said, without releasing a date for a potential listing.
Renk has booked orders for 3.9 billion euros $4.3 billion, including framework contracts, the company said in a statement.
Renk's value is estimated to be around 2.5 billion euros in the event of an IPO.