Newsline 2/2000 - KSPG AG

The latest news from the Rheinmetall group 2/2000
Newsline
Das Profil
Newsline
Stockholders’ newsletter of Rheinmetall AG: orders at an all-time high
Reengineered and back on track
Düsseldorf. Having slipped up in
profit for 1999 due to the steep losses
sustained by STN Atlas Elektronik and
Jagenberg, the Rheinmetall group,
with a reengineered portfolio and a towering
order backlog, is well back on
the success track in 2000. This was the
general message given in Rheinmetall’s
most recent newsletter to the
stockholders. In 1999, consolidated
world sales of the group totaled a figure
of € 4.515 billion, which was nine
percent up on the previous year.
Within the STN Atlas group, tight public-sector
budgets meant that programs
were delayed and already placed
orders put on hold, the resulting
sales shortfall impacting to a sustained
degree on profit which also suffered
from heavy unbudgeted extraordinary
expenditure for restructuring,
portfolio clean-up and project-related
cost overruns for certain development
contracts. These latter projects will be
instrumental in generating new business
over the years ahead. Fiscal 1999
was largely governed by nonrecurring,
below-the-line burdens while 2000
will again show a profit as a result of
the measures initiated back in 1999.
The losses of the Jagenberg group
were mainly due to market circum-
Düsseldorf. Dr. Hans U. Brauner, 66,
chairman of Rheinmetall AG’s supervisory
board and from 1985 to 1999
the group’s executive board chairman,
has resigned as supervisory
board chairman as of March 31, 2000.
For 20 years, Brauner, who joined the
Rheinmetall executive board in 1980,
has held senior positions within the
Rheinmetall group. In December 1999
Brauner had stepped down earlier
Development of orders received
in million euros
4738
+ 18%
4004
1998 1999 1998 1999
A historic all-time high: orders received (up 18 percent) and orders on hand (up
28 percent) at the Düsseldorf-based Rheinmetall group.
stances, this group failing to offset poor
paper technology business in Asia
by incremental sales elsewhere. With
prices slumping and customer consolidation
gaining, sales shrank further
and Jagenberg failed to break even in
1999. As already published on a number
of occasions, in November 1999
Rheinmetall found a competent buyer
for Jagenberg in the form of Sachsenring;
in a supplementary agreement in
Brauner resigns from Rheinmetall
than planned from the executive
board chairmanship in order to assume
the office of supervisory board
chairman. He played a leading role in
the development and strategic alignment
of Rheinmetall into a technology
group (sales of DM 9 billion; 31,000
employees) with its core capabilities
of Automotive (listed Kolbenschmidt
Pierburg AG), Electronics (listed
Aditron AG), and Defence (Rhein-
Development of orders on hand
in million euros
3233
+ 28%
4140
February 2000, Rheinmetall has meanwhile
shed all its shares in Jagenberg
AG. Jagenberg, in turn, sold its
Packaging Technology to IWKA at the
end of 1999, and this latter company
has thus been able to expand and cement
its international position in the
market.
Having reengineered its shareholding
portfolio, as stated, by divesting En-
(Continued on page 10)
metall DeTec AG). With enterprise
and vision, and enjoying the trust
and confidence of Röchling, the
group’s major stockholder, Brauner
has “civilized” the erstwhile midsize
arms company into an international
group with a clearly defined forwardlooking
portfolio. For this lifetime
achievement, which includes the
creation of a corporate culture based
on human values, Röchling as the
major stockholder thanks Dr. Hans U.
Brauner.

Newsline
First quoted on 27 March 2000
Aditron AG goes public
Düsseldorf/Frankfurt/Stuttgart. The
stock of Düsseldorf-based Aditron AG,
a company that subsumes Rheinmetall’s
industrial electronics business,
was for the first time publicly quoted
on 27 March 2000. Aditron has thus
succeeded to and resumed the previous
regulated market quotation of
KIH Kommunikations Industrie Holding
AG, Karlsruhe, at the Frankfurt/
Main and Stuttgart stock exchanges.
At the same time, the 3-month period
commenced within which stockholders
of KIH AG, meantime merged into
Aditron AG, can exchange their KIH
shares into Aditron AG stock.
For this purpose, Aditron AG has raised
its capital stock by € 3,502,080 to
€ 40,857,600 by issuing a total
1,368,000 new registered no-par shares.
The exchange ratios are three registered
no-par shares of Aditron AG
stock for one DM 50 share of KIH preferred
stock at par, and seven for two
DM 50 shares of KIH common stock at
par. KIH AG common stockholders will
additionally receive a cash payment of
€ 0.69 per share of KIH common
stock. After two no-dividend years, the
previous KIH AG stockholders will
again receive a cash dividend for their
new Aditron AG stock for the entire fiscal
1999.
KIH AG’s merger into Aditron AG took
retroactive economic effect as of 1 July
1999, and became legally effective on
24 March 2000, upon entry of the merger
in the Commercial Register of the
Düsseldorf Local Court. Rheinmetall
holds a 96.7 percent stake in Aditron
AG’s capital stock, the previous KIH AG
Fritzsche chairman
of EMG EuroMarine
Hamburg/Düsseldorf. Dr. jur. Michael
Fritzsche (50), since 1992 a Rheinmetall
group executive, has been appointed
as the new management board
chairman of EMG EuroMarine Electronics
GmbH, Hamburg, as of 1 March
2000. Concurrently he is also a member
of the Aditron AG executive board.
At the end of February 2000, Peter
Wich (53), who had been in charge of
stockholders accounting for the freefloating
remaining 3.3 percent.
Aditron’s core capabilities focus on
the high-growth markets of automotive
electronics and of communications
and security. In certain sub-markets
the company is a clear leader (especially
the Heimann Systems x-ray scanning
equipment for security checks),
and thus Aditron is also well poised for
both future organic growth and envisaged
M&As and alliances.
In 1999, sales of the Aditron group reached
€ 686 million (up 4.5 percent on
the previous year). The biggest growth
generators were Heimann Systems, followed
by Hirschmann. At € 666 million,
order intake matched the year-earlier
level. At the year-end, orders on hand
totaled € 220 million. Pretax profit came
to around € 16 million. At the end of
1999, the Aditron group employed
5,598 persons (down 6.6 percent).
For the current fiscal year Aditron AG
expects sales in the region of € 1.1 billion.
Its workforce will be just under
8,000 in future. Growth is expected in
both domestic and foreign business,
particularly the latter.
Retroactively as of 1 January 2000,
Aditron AG has taken over from Rheinmetall
DeTec AG the latter’s stake in
EMG EuroMarine Electronics GmbH,
Hamburg. EMG was the result of the
1999 merger of STN ATLAS Marine Electronics
GmbH (operating in the industrial
marine electronics sector) with
the marine operations of the SAIT-Radio
Holland group. Rheinmetall holds a
50-percent stake in this joint venture in
which it exercises industrial control.
finance and controlling, stepped
down from the management board
of EMG in order to attend to intragroup
projects at Rheinmetall, Düsseldorf.
His successor at EMG is
Jacques Debulpaep (51) who had
joined the EMG management board
when EMG EuroMarine Electronics
was formed on 1 October 1999.
The management board of EMG
therefore consists of Dr. jur. Michael
Fritzsche (chairman) and, as hitherto,
Dipl.-Ing. Heinz Baier (59) and
Dipl.-Kfm. Jacques Debulpaep.
2
Kaiser is the
new chairman
Neckartenzlingen. Dipl.-Wirtschafts-Ing.
Walter R. Kaiser (53)
has been appointed as the new management
board chairman of Richard
Hirschmann GmbH & Co. (Neckartenzlingen).
He has also assumed
responsibility for the automation
and network systems unit of
Hirschmann.
Kaiser is taking over from Dipl.-
Math. Klaus Eberhardt (51) who, as
of 1 January 2000, has been appointed
as the new chairman of the
executive board of Rheinmetall AG,
a position he is combining with that
of executive board chairman of
Aditron AG.
In the past, Kaiser has exercised
various executive functions at IBM
Deutschland GmbH (Stuttgart), followed
by the position of general manager
of Kaba
Benzing GmbH
(Villingen-
Schwenningen),
and most
recently of Wieland
Electric
GmbH and Wieland
Holding
GmbH (Bam-
berg). Besides
his professional
Walter R. Kaiser
activities, Kaiser has for many years
been lecturing on technical sales
and sales management at the technical
college in Esslingen.
Further members of the Hirschmann
management board are Dipl.-
Ing. Eduard Schlauch (58) and
Dipl.-Kfm. Karsten Odemann (39).
Newsline
Newsline is a summary of the most
important news articles published
in “Das Profil”, the company newspaper
of the Rheinmetall group
Publisher: Rheinmetall AG
P.O. Box 104261, D-40033 Düsseldorf
Responsible: Dr. Klaus Germann
Editor-in-chief: Rolf D.Schneider
Issue: April 2000

Newsline
Second Rheinmetall management conference in Düsseldorf
Growth abroad remains essential
Düsseldorf. A review of the year 1999
and an outlook towards the future:
talks and discussions at the second
Rheinmetall management conference
on 20 January this year focused on
operational and strategic perspectives
for the Rheinmetall group in the year
2000 and the years to come as well as
on the development of the group since
1980 and the (preliminary) figures for
1999. Speakers at the conference in
Düsseldorf which was attended by
nearly 300 top and middle level executives
of the group from 15 countries included
Michael Deaver, deputy chief of
staff under President Ronald Reagan
(1981 to 1989) and now vice chairman
of Edelman Public Relations Worldwide,
the chairman of the executive
board of the Rheinmetall group Dipl.-
Math. Klaus Eberhardt and Dr. Hans U.
Brauner, the supervisory board chairman
of Rheinmetall AG at that time.
Speaking about the year 1999 and
the plans for 2000, the new chairman
of the Rheinmetall group, Dipl.-Math.
Klaus Eberhardt gave a detailed presentation
of the group’s existing plans
and perspectives for the current business
year. The preliminary sales figures
for 1999 showed a value of € 4.5 billion
(corresponding to approximately nine
billion marks). Addressing the order influx
of around € 4.707 billion in 1999 –
up 17.6 percent on the previous year
and therefore the highest in the entire
history of Rheinmetall – Eberhardt emphasized
that “also in 1999, the group
has progressed on the market with orders
booked 17.6 percent higher than
in the year earlier. Compared to 1998,
we have therefore been able to boost
the backlog of orders by 24.7 percent,
an all-time high for Rheinmetall of well
and truly four billion euros.”
In this context, the 51-year old chairman
of the Düsseldorf-based group
appealed to the executives that they
should do everything in their power to
achieve the sales and earnings targets
set for the year 2000. “The plans for the
year 2000 are realistic and encouraging.
A backlog of orders of € four billion
– others would be delighted to have
such a sound basis. We have achieved
growth and have become more global.
These are qualitative claims which
should also encourage the younger
executives to commit themselves to
Full house: some 300 representatives of top and middle management levels of
the Düsseldorf-based Rheinmetall group attended the second Rheinmetall management
conference in Düsseldorf on 20 January this year. Discussions and deliberations
at the conference – which included a supporting program with the satirical
review artistes Dr. Peter Förschler and Dieter Aisenbrey as well as members of the
Bigband of the Essen Folkwang-Hochschule directed by the pianist Tae-Sung
Chung – centered on the operational and strategic goals of the group for the year
2000 and the years to come.
Gave a detailed presentation of planning
for the year 2000: Rheinmetall’s
chairman Dipl.-Math. Klaus Eberhardt.
Addressing the subject of “values in
the Rheinmetall group: creating, imparting,
sustaining and growing”, Dr.
Hans U. Brauner, formerly supervisory
board chairman, gave a review of developments
in the group since 1980.
3
this group.” Eberhardt went on to say
that it would be a remarkable achievement
if the group managed to attain the
budgeted targets in all areas, in every
plant and in all companies belonging to
the group. He challenged those present
to act as entrepreneurs and achieve the
targets they themselves had set.
Referring to the medium-term growth
planned for the group, Eberhardt stressed
once more that Rheinmetall will
continue to put its stakes on the further
globalization of business in the future.
“In our markets, we see that our chances
outside Germany are growing. And
we therefore intend (to continue) to
pursue the strategy of growth abroad.
We are increasingly developing from a
national into an international corporation”.
Addressing the executives
assembled at Rheinmetall’s communication
center in Düsseldorf – of which
some 20 percent represented sites
outside Germany – Rheinmetall’s boss
promised that the ongoing globalization
of the group would also be accounted
for in regard to the development of
executive resources.
Eberhardt’s speech followed that of
his long-standing predecessor Dr. Hans
U. Brauner, the supervisory board chairman
of the Rheinmetall group at that
(Continued on page 4)

(Continued from page 3)
time. Addressing the subject of “Values
in the Rheinmetall group: creating, imparting,
sustaining and growing”, Brauner
held a very personal review of the
last two decades of developments at
Rheinmetall. He pointed out that this
had been his “personal legacy”.
Brauner stated that the quantitative
value of the group as such and of its
assets had developed very positively
over the last twenty years. Broken down
into the individual business sectors
and management holdings, the group
has achieved an overall rise in value
since 1980 of some 2.3 billion German
marks. Moreover, sales have grown
from 700 million marks in 1979 to nearly
nine billion in the year 1999. To quote
Brauner: “We have achieved a clear
positive development of our quantitative
values. And we will not only maintain
these in the coming decade but
will increase them even further.”
In the wake of the recent concentration
on the core business areas Automotive,
Electronics and Defence, Brauner
remarked that the aim will be to
make the development of Rheinmetall
(even more) transparent and to give
the rather reticent market price greater
momentum. A point to note in this
connection: according to a recent shareholder
value study by the internationally
renowned accountants Arthur
Andersen of the top 500 shares in Europe,
Rheinmetall is ranked 5th among
the European conglomerates, 11th
among the German companies included
in the Euro-500 and holds 96th
position among the Euro-500.
In the opinion of Brauner, the qualitative
management values of the
group have likewise shown a marked
improvement over the last twenty
years. He remarked that “the technical
competence has progressed enormously
on all management levels. We
have (today) a highly qualified and also
highly motivated team of managers
working as teams or as a team with a
head.” Addressing the skills, knowhow
and intelligence of the well over
6000 employees with an academic
background, Brauner emphasized the
high technical competence and outstanding
level of qualification throughout
the group. “Training and qualifica-
Newsline
Second Rheinmetall management conference in Düsseldorf
Growth abroad remains essential
tion activities are continuing and importance
is attached to promoting junior
members on the staff.” Brauner
added that management values, rules
of conduct and model patterns had
been established, setting new standards
inside and outside the group.
As his (quasi) personal legacy to the
executive board of the group’s holding,
Brauner once more outlined the planned
goals for the group. Rheinmetall
intends to boost sales and earnings
6000
5000
4000
3000
2000
1000
0
in million €
4129
2107
4513 4465
2544
2022 1969
1998 actual 1999 forecast 2000 planned 2001 planned 2002 planned
Focus on internationalization: the share of foreign sales by
the Rheinmetall group will continue to rise distinctly in future.
even further – a fact which had already
been presented to financial analysts
and business journalists during informatory
talks held in December last year
(see last issue of Newsline) – and has
its targets set on sales of some 20 billion
German marks for the year 2010. Of
this, Automotive is to generate ten billion
marks with Electronics and Defence
each contributing five billion marks.
As an experienced politician with extensive
experience in US and international
politics, Michael Deaver – acting
as the guest speaker at the conference
– addressed his speech entitled “American
politics looking to 2000” to aspects
of successful management as
fundamentally viewed from his stand-
More than forty years of experience in US
and international politics: Michael Deaver.
4
2582
1883
4718
2801
1917
point. Deaver – formerly deputy chief
of staff under US President Ronald Reagan
and now vice chairman of one of
the world’s largest and most renowned
public relations agencies – is of the
opinion that to succeed in management
one must know exactly who one
is, yet know equally well one’s strengths
and weaknesses. He stated that it is
important to have and also announce
simple messages, these management
qualities being essential not only for
politics but also for
the economic and
5082
3032
2050
1998-2002: +44%
1998-2002: +1%
foreign
domestic
business community.
Regarding the
domestic developments
in the
world’s largest industrial
nation, also
with a view to
the forthcoming
presidential elections
this fall, Deaver
stated that he
expects a change in government, pointing
out that the USA are better off
than ever before and voters in the US
are very satisfied. There is no conflict
and no war anywhere in the world in
which the USA are involved. Indeed,
the United States now have a generation
of young voters who have never experienced
a conflict, have never heard
of economic recession and who have
never suffered from the repercussions
of such situations. Despite important
social issues – for instance, concerning
the health system, national insurance
and the educational system –
the determining subject (of the election)
will be the character, the personality.
Deaver therefore believes that
the Republicans will move into the
White House, that the Senate will remain
in the hands of the Republicans
and that the House of Representatives
will go to the Democrats with a slim
majority. In other words, the USA will
probably have a divided government
again. As to the prospects for foreign
policy after the forthcoming 43rd presidential
elections, Deaver expressed
the hope that there would be a leadership
for which the more than 40 years of
close ties to Nato would continue to
form the basis of US foreign policy in
future, too (see pages 14 to 17).

Newsline
Technology from STN Atlas Marine Electronics on board the Aurora
Safe passage assured with Nacos
Papenburg/Hamburg. Tens of thousands
of onlookers turned out on 19
February this year to watch the Aurora
luxury liner as it was cautiously navigated
from its shipyard in Papenburg
on the River Ems to Eemshaven on the
Dutch coast. The event which was given
huge media attention once again
demonstrated that utmost precision
was the name of the game.
After all, the fact that the 76000 GRT
ship with an overall length of 270 meters
and a width of exactly 32.2 meters
was actually able to sail along the Ems
which is extremely narrow at various
points is largely also attributable to
the technology delivered by STN Atlas
Marine Electronics GmbH. The Hamburg-based
company that is a subsidiary
of the recently established EMG
EuroMarine Electronics GmbH (a joint
venture of Rheinmetall Aditron AG and
SAIT-RadioHolland S.A.) delivered the
complete diesel-electric propulsion
system for the latest cruise liner to be
built in Papenburg: the propulsion system
includes two synchronous engines
each with a capacity of 20 MW,
eight diesel generators with a total capacity
of 72.5 MW and the mediumvoltage
switching system.
Experts from STN Atlas Marine Electronics
GmbH were also responsible
for the delivery of the integrated navigation
system Nacos 65/3 installed on
board the Aurora. Günter Krombach, vice
president marketing, pointed out
New partner for
Mauser WaldeckAG
Düsseldorf/Amsterdam/Waldeck.
Rheinmetall AG, Düsseldorf, intends
to sell its majority financial holding
(around 82 percent) in Mauser Waldeck
AG, Waldeck, to Koninklijke
Ahrend NV, Amsterdam, Netherlands,
thus taking a further step toward the
announced leaner portfolio while
strengthening its worldwide interests
in the core operations of Automotive,
Electronics, and Defence.
As of January 1, 2000, Ahrend will
take over Mauser Waldeck AG along
Technology from STN Atlas Marine Electronics GmbH on board: the Hamburgbased
company, a subsidiary of EMG EuroMarine Electronics GmbH, delivered the
complete diesel-electric propulsion system as well as the integrated navigation
system Nacos 65/3 for the new Aurora luxury liner.
that it was thanks to the integrated navigation
system which includes three
Multipilots as well as a central display
for all navigation and operating data
(the conning display) that the cruise
ship intended for P&O was actually able
to navigate along the River Ems.
Commenting on the function of the
Multipilot, Krombach explained that
this Nacos-component allows the captain
to observe his own ship and the
wider surroundings above and below
water practically from a bird’s-eye view.
with the operating companies Mauser
Office GmbH and Systemmöbel Dessau
GmbH, as well as the non-German
Mauser sales companies. In
1999, these companies together generated
sales of around € 100 million
with a workforce of 840.
Still within the Rheinmetall group
(as a financial holding) is Goldbach
Innenausbau GmbH, a manufacturer
of cupboard and partition systems
whose 106 employees achieved sales
of around € 15 million in 1999. Talks
on the future of this company are also
being held.
Founded in 1896, Koninklijke Ahrend
NV is a listed international company
operating in the office furniture,
5
In other words, the navigator is always
kept up to date about everything that is
happening around him.
The Aurora cruiseliner had been ordered
by the world famous Peninsular
and Oriental Steam Navigation Company,
better known as P&O (London).
The ship which offers space for nearly
1900 passengers and has a cruise
speed of 24 knots will set out on its
maiden trip into the Mediterranean on
1 May 2000 and will then be used for
cruises throughout the world.
office and computer supplies as well
as reprography markets. Its 2,081 employees
generate annual sales of around
€ 446 million. The office furniture
division, which in 1999 made up
around 50 percent of the group’s
aggregate sales, currently produces
at two locations in the Netherlands
from where it markets through its own
branches at home and abroad a range
of quality furniture distinctive for
style and function.
The acquisition of Mauser Waldeck
AG will broaden Ahrend’s access to
the German market. A company with
a long-established tradition, the
Dutch manufacturer will continue to
use the Mauser trademark.

Newsline
Stockholders’ newsletter of Kolbenschmidt Pierburg
Automotive group is
outpacing the industry
Düsseldorf. As an OEM-independent
manufacturer of modules and systems
“for every aspect of the engine”, the
Kolbenschmidt Pierburg group, a member
of Rheinmetall, outpaced industry
growth in the second half of 1999. As
pointed out by the management holding
Kolbenschmidt Pierburg AG in its
recent newsletter to the stockholders,
during this period the group succeeded
in surpassing the high sales level
of the corresponding year-earlier period
by a clear 9 percent, with earnings
surging by as much as 27 percent. The
substantial improvement in earnings
during the second half of 1999 was particularly
pleasing: at € 32 million, earnings
before tax (EBT) in the latter half
of the year for the first time topped the
normally higher first six months. As a
result, a 4.1-percent return on sales
was achieved for the second half of
1999 (up from 3.3 percent for the comparable
year-earlier period). Group sales
in 1999 reached € 1.527 billion (3.7
percent up). The acquisition of the US
piston producer Zollner Pistons and
the divestment of PLU-Luftfahrttechnik
resulted on balance in a sales increase
of € 34 million. As a result, the Kolbenschmidt
Pierburg
group fully benefited
in terms of organic
growth from
the higher production
volumes of
cars (up 1.5 percent)
and commercial
vehicles (up
0.4 percent) in Western
Europe, despite
the necessary
price conces-
sions.
Kolbenschmidt
Pierburg boosted
sales in 1999 both
in Germany and outside. Due to the
stronger market position for pistons in
NAFTA countries as a consequence of
the Zollner acquisition, growth abroad
outpaced increases in Germany.
In 1999, Pistons showed the steepest
growth rate, partly due to the
start-up of diesel piston production for
Peugeot. Additionally, extra potentials
available through Zollner were immediately
exploited, Kolbenschmidt Pierburg
becoming the largest piston producer
in the United States and the second
largest worldwide.
The most comprehensive internal expansion
was shown by Air Supply/
Pumps in 1999 which, particularly
through its innovative intake manifolds,
electronic throttle bodies, valves
and pumps, generated growth of
more than € 20 million in the wake of
major series production start-ups, e.g.
throttle devices for General Motors.
Plain Bearings also achieved aboveaverage
growth rates while the declines
in the smaller divisions Aluminum
Technology (engine blocks), MotorEngineering
and Motor Service (aftermarket
business) were mainly due to temporary
effects as well as the divestment
of PLU-Luftfahrttechnik.
Tangible asset additions in 1999 totaled
€ 165 million, the high level of
the first half of the year continuing unchanged
into the second. Most of the
expenditure by the Kolbenschmidt
Pierburg group in 1999 was linked to
Motorized throttle bodies EDR-E from Kolbenschmidt Pierburg
combine all possibilities for managing the mass airflow
on modern gasoline engines.
customer projects and contracts. In
readiness for the substantial organic
growth scheduled over the years
ahead, tangible asset expenditure in
1999 was raised by 45 percent compared
with the previous year.
Major projects included expanding
capacity for the magnesium intake
6
The world’s smallest diesel piston
used in the Smart.
manifolds at Nettetal, setting-up the
production of motorized throttle devices
in Berlin, and broadening manufacturing
capacities for new product
start-ups at the piston factories in Brazil,
the United States, and France. Traditionally
a big spender, the Aluminum
Technology division (engine
blocks) made preparations in the course
of 1999 for the considerable sales
increases targeted as from 2001, by
extending its low-pressure casting capacities,
etc. The investment program
for engine block production will continue
in 2000/2001. A number of capital
assets will also be leased.
The high volume of capital expenditure
surpassed depreciation by 42 percent.
In 2000, additions to tangible assets
have been budgeted to shrink
back to the level of depreciation. The
acquisition of Zollner Pistons represented
another significant financial investment
in 1999.
Despite the 3.7-percent sales climb,
the group succeeded in limiting workforce
growth to three percent. On an
annualized average, the overall headcount
in the group was 11,335 in 1999,
and as of 31 December 1999, the Kolbenschmidt
Pierburg group had a
workforce of altogether 11,789 (up 786
from 11,003). The Zollner acquisition
accounted for 1,082 while 258 employees
left the group in the wake of
the divestment of PLU aviation business.
As of 31 December 1999, the
group employed 5,512 persons in Germany.
Of the total 11,789 worldwide,
the non-German workforce accounted
for 47 percent. As a result of the acquisition
of the pump activities of Magneti
Marelli at the start of 2000, the number
of non-German employees rose
further to 49 percent. Kolbenschmidt
(Continued on page 7)

drupa: Jagenberg
group at PrintCity
Düsseldorf. At drupa 2000, the Jagenberg
group is presenting on
stand E57, hall 6, as part of the joint
PrintCity project its extensive range
of die-cutting and folding-carton products.
Alongside Jagenberg Papiertechnik
GmbH, Woschnik & Partner
Maschinenbau GmbH and Jagenberg
Diana GmbH, the Jagenberg stand
will also be hosting BMB Bachofen +
Meier AG and Lemo Maschinenbau
GmbH. Rounding off the range is a robotized
automatic packaging and
handling system built by A + F Automation
+ Fördertechnik GmbH for boxed
folding cartons.
Taking up a large area of the joint
stand are new products from the extensivedie-cutting
and folding-cartonlineup
of WPM
GmbH and Jagenberg
Diana
print media fair
GmbH. These
are also part of
a workflow entitled
”The ma-
(Continued from page 6)
Pierburg intends to continue this policy
of globalization in order to completely
exploit customer potentials and
achieve cost advantages through production
sites outside of Germany.
In the second half of 1999, the Kolbenschmidt
Pierburg group achieved
EBT of € 32 million, equivalent to a return
on sales of 4.1 percent, a significant
improvement over the figure for
the second half of 1998 (3.3 percent).
In all, fiscal 1999 closed with EBT of €
60 million and a return on sales of 3.9
percent. The improvement compared
with the forecast published in the late
summer of 1999, was due to sales surging
toward the end of the year, as well
as to exchange rate advantages. The
EBT quoted already take into account
the budgeted, exceptionally high capital
outlays and the interest burden resulting
from such capital expenditures,
any further input, and the share
Newsline
nufacture of a folding carton,” which
is designed to integrate Jagenberg
and its subsidiaries within the overall
PrintCity architecture. The exhibits
include two new Diana Pro 114 units
with a variety of novel developed features
such as an Eco 105-1 with a new
LIN setting-up device to enable a linear,
flattened blank throughout.
Swiss Bachofen + Meier AG is demonstrating
in action its newest curtain
coating system besides informing
visitors about its more traditional coating
techniques. This Jagenberg subsidiary
is also exposing its newly developed
vacuum roll which only recently
helped propel a paper coating line to
a new world record speed of 3,259
m/min. BMB will be briefing its customers
on the advantages of both the
new and the traditional coating techniques
and advising potential buyers
on which to opt for in view of their particular
applications.
Lemo Maschinenbau GmbH is the
Jagenberg Group specialist for both
flexo printing and bag welding machines.
This company is presenting
its video help line, a low-cost and effective
new-media service tool for Jagenberg
customers anywhere in the
world.
Stockholders’ newsletter of Kolbenschmidt Pierburg
Automotive group is outpacing . . .
acquisitions. This was, in fact, the only
reason why EBT for all of 1999 fell just
short of the previous year’s; in contrast,
the 1999 earnings before depreciation,
interest and taxes (EBDIT) were
again raised from € 167 million to €
184 million. Pistons and Plain Bearings,
in particular, showed a significant
improvement over the previous
year.
Increased earnings were generally
due to successful rationalization efforts
and, in certain cases, favorable
exchange rates which in turn offset the
burdens resulting from lower prices
and higher personnel expenses. The
group’s 1999 tax load ratio was clearly
above the 1998 level as tax loss
carryforwards had been fully utilized
and high expenses disallowable
against tax were incurred. However,
since the new calculation methods
were applied, the DVFA-based earnings
per share are not affected by this
7
Sheet cutter
for Scheufelen
Oberlenningen/Neuss. The Scheufelen
paper mill in Oberlenningen in
the Swabian region of Germany has
just ordered the ultra-modern highperformance
Synchro sheet cutter
model 400-2200 DD2 from Jagenberg
Papiertechnik GmbH in Neuss.
The machine has a working width
of 2,200 mm and will process highquality
art and illustration printing
papers of basis weight 100-250
gsm, and also specialty grades
(such as board for playing cards) of
up to 500 gsm basis weight. With
its multi-motor AC direct drive, the
Synchro achieves speeds of up to
400 m/min.
The reels will be unwound by a
turret-type unwind, specially designed
for non-stop operation, with
length slitting performed by 5 pairs
of Jagenberg Speedslit slitters. Following
the cut-off and overlapping
section, this machine is furbished
with a Speedpiler pile changer with
just one layboy for pile-changing
without sheet loss at production
speed.
burden. Kolbenschmidt Pierburg AG
intends to maintain its dividend policy
which is based on continuity.
The automotive market in Western
Europe and throughout the world is
currently predicted to remain steady at
the high level of 1999. A slight decline
in certain countries cannot be ruled
out which, however, is expected to be
offset by rising production figures elsewhere.
Against this setting, the year 2000
began very favorably for the Kolbenschmidt
Pierburg group. Sales in January
and February 2000 clearly surpassed
the year-earlier figures virtually
throughout the divisions. The sales
uptrend in the first half of 2000 is expected
to continue, with additional
growth being generated by the yearearlier
takeovers. The group will exploit
this sales upswing in order to
achieve once again an above-average
level of earnings.

Newsline
Rheinmetall’s financial executive Dr. Herbert Müller
Giving the group more
room to maneuver
Düsseldorf. Asked about his personal
opinion as to the further development
of the Rheinmetall group, the answer
given by Dr. rer. oec. Herbert Müller
– the financial executive of the management
holding since 1 January
2000 and in this capacity responsible
for finance and controlling throughout
the group – is as always prompt and
precise: “I rate the likelihood that our
group will attain sales in the order of
20 billion German marks and a net profit
of around 500 million marks by the
end of the decade as extremely realistic.
I can give my unconditional support
to this long-term perspective.”
Dr. Müller sees it as perfectly natural
and also as a personal commitment
that the stations towards this extremely
ambitious target (which will involve
an awful lot of hard work) will be supported
and forged by him. The political
economist points out that ultimately
all business activities are reflected by
the figures produced and that exactly
these are his responsibility. Referring
to the influence which can be exerted
by the financial department, he sees
this mainly as “giving the business
more room to maneuver by optimizing
the accounts, taxes and funding possibilities.
After all this is my job.”
One particularly successful example
mentioned by Müller in this context is
the DM 700 million syndicated loan
granted by 21 national and international
banks in December 1997. The conditions
of this loan were excellent and
Rheinmetall reaped a lot of praise
from experts. According to Müller, the
huge transaction caused quite an
uproar in the German bank community
at that time. In which context, the financial
manager of Rheinmetall has
no doubts whatsoever that the company’s
excellent reputation and the
high qualification of its management
were essential for the loan.
As to qualification: as the boss of a
highly qualified and equally motivated
team, Müller sees himself as the motor,
as the driving force in order to secure
the high performance level under
the responsibility of the individual. Although
it would be an understatement
to say that his form of leadership is
specifically “cooperative”. In the
words of Müller: “Good colleagues
need space and that is what I try to give
them by delegating interesting jobs
to them – jobs that obviously involve
responsibility. Only thus can I keep
good employees in my department in
the long term.”
When asked to give a concrete example,
Rheinmetall’s new financial executive
says without hesitation: “If, for
instance, a due diligence* is necessary
for a planned acquisition –
perhaps abroad – I will not necessarily
do the job myself but may just as well
delegate it to somebody else”, fully
aware of the fact that the superior will
naturally also benefit from the (later)
success of the work done by the individual.
This is teamwork of the motivating
type.
Openness, fairness and partnership
in his dealings with others rank top on
Müller’s scale of values. He rates mutual
esteem and friendly relations between
colleagues “on all levels of the
hierarchy” as the appropriate manner
of working together, in fact as absolutely
normal. “I always consider my opposite
as a partner with whom a task
or problem is to be solved. This is why
partnership between colleagues is so
very important to me.” Obviously, this
does not mean that critical words cannot
be spoken in case of need.
Müller’s values for his business dealings
are also determined by the principle
of legality adopted throughout the
Rheinmetall group – “the governing laws
determine our freedom to maneuver”
and the open, constructive dialog
with the public. “Precedence is given
to the correct, timely and reliable information
on the situation of the group.”
In terms of its owners, shareholders,
investors, the financial community and
the media, this motto has long been
true for the Düsseldorf-based group.
As a fully fledged financial expert
Müller – who abhors exceedingly euphoric
plans because they are often
not realistic – knows all too well that
the strong influence of the financial
8
Rheinmetall’s financial executive Dr.
rer. oec. Herbert Müller considers the
sales target of 20 billion German
marks and a net profit of approx. 500
million marks to be perfectly realistic
by the end of this decade. Against this
setting, the 46 year-old manager sees
it as his job to give the core sectors
Automotive, Electronics and Defence
more room to maneuver by optimizing
the accounts, taxes and funding possibilities.
Müller mentions the syndicated
loan of 700 million German marks
negotiated with numerous national
and international banks in 1997 as one
successful example of such activities.
community which already exists today
(e.g. the small shareholders, major investors,
analysts, banks and rating
agencies) will continue to increase in
future. “The pressure will grow.”
Nonetheless, it is important that business
dealings are not oriented exclusively
towards relatively short-term actions
and goals. “We must keep an eye
on our longer term strategy which focuses
on qualitative and quantitative
growth in the three core sectors Automotive,
Electronics and Defence. A significant
boost in earnings will, however,
only be achieved by those who
actually concentrate on what they are
good at.” A process which takes a lot
of time and patience. And naturally also
includes a critical assessment of
the current figures at the end of the
month or quarter.
* Prior to the acquisition or sale of a company, the
latter is subjected to a thorough investigation. This
is done by the so-called due diligence process during
which the repercussions, risks, potentials and
deficits of a take-over are assessed. The objective of
a due diligence is to determine the purchase price;
moreover, it provides a basis for negotiations.

Dr. rer. oec. Herbert Müller:
Always used
his chances
A s
the executive responsible
for finances and controlling
on the executive board of
Rheinmetall AG since 1 January this
year, the career of Dr. rer. oec. Herbert
Müller can be reduced to a
simple yet very successful formula:
the man born in Meerbusch has always
systematically solved the
tasks he had set himself and reached
the professional targets he
sought for himself. “I suppose it
would be fair to say that I consistently
used the opportunities offered
by our educational system.” Determination
as a trait and an instrument
for his personal career.
Some details on his education: after
nine years at elementary school
and two years at business school, a
commercial apprenticeship and studies
at a technical college, the 19
year-old Müller attended advanced
technical college in Düsseldorf, graduating
in business economics after
three years. He then went on to
study at the University of Duisburg
which he completed with his diploma
in economics in 1978. Eight
years later – and long since a member
of the working community – he
took his doctor’s degree in economics
(Dr. rer.oec.). He passed his
last exam qualifying him as a tax
consultant in 1996, shortly after joining
Rheinmetall AG as director of
the central department of finances.
The young graduate acquired his
first professional experience with
Contigas AG (Düsseldorf) in the late
seventies. In the period between
1980 and 1984, he worked as an assistant
to the professor for accounting/controlling
at the University of
Duisburg. Further stations in his career:
from 1984 to 1989 he worked
for Deutsche Leasing AG in Frankfurt
(as deputy head of the accounting
department), the IWKA AG (in Karlsruhe)
as financial director and for
GEA AG in Bochum, a company operating
in the field of power plant and
packaging machine construction (financial
director from 1993 to 1995).
Müller has been working as an executive
for the Rheinmetall holding
since September 1995.
Newsline
GOT OFF TO A PERFECT START during the first of a total of 17 races in the
Formula 1 world championships: on 12 March this year at the Australian Grand
Prix on the Albert Park course in Melbourne, Michael Schumacher came in first
with his Ferrari, followed by Rubens Barrichello. The German racing driver and
his Brazilian team mate – whose racing cars are fitted with oil and water pumps
developed by Kolbenschmidt Pierburg in Italy – therefore presented an excellent
start into the new Formula 1 racing season for the “Scuderia Ferrari”. Our picture
shows Schumacher who also won the second race of the world championship in
Sao Paolo (Brazil) on 26 March crossing the finishing line in Melbourne.
Moody’s rating is first-class
New York/Düsseldorf. Following the
favorable assessment by the London
branch of Standard & Poor’s in November
1999 with BBB for long-term credit
standing and senior unsecured debt
and A-2 for short-term credit standing,
Moody’s Investors Service, New York,
has rated the stable growth outlook for
Rheinmetall even higher.
Moody’s Investors Service assigned
a Baa1 issuer rating to Rheinmetall AG
for long-term debt and a Prime-2 to the
company for short-term debt. The ratings
are based on Rheinmetall’s diversified
set of businesses with lea-
Unanimous vote
for Klaus Eberhardt
Düsseldorf. Dipl.-Math. Klaus Eberhardt
(52), appointed executive
board chairman of Rheinmetall AG at
the supervisory board meeting of 8
December 1999, has had his term of
office extended to the end of 2004.
This decision was reached unanimously
at the supervisory board
meeting on 16 March 2000.
At the same time, Dipl. Phys. Werner
Thürmel (74) and Professor em.
Dr.-Ing. Hans Gerd Domen (72), both
9
ding market positions and a technological
edge, a conservative financing
policy and a stable shareholders base,
supportive of long-term strategies. The
ratings also reflect the challenge for
Rheinmetall to raise margins in its core
activities and the consolidation trend
in many of Rheinmetall’s businesses.
The rating also allows for the corporate
structure of the group with less
than 100% interests in the growth businesses,
the potential for further ownership
dilution to fund strategic investment,
and the structural subordination
of parent company debt.
long-standing members of the supervisory
board, retired from the board
by reason of their age.
They have been replaced by Dipl.
rer. pol. Werner Engelhardt (54) and
Dr. Bernd M. Hönle (51), appointed
as members of the supervisory board
by the local court of registration,
Berlin-Charlottenburg. Engelhardt is
management board chairman at
Röchling Industrie Verwaltung GmbH
which holds approx. 66 percent of
the common stock of Rheinmetall
AG. Dr. Hönle is also a member of the
management board of Röchling Industrie
Verwaltung GmbH.

(Continued from page 1)
gineering and Office Systems (the latter
being sold to Koninklijke Ahrend NV),
Rheinmetall will in 2000 be able to successfully
concentrate on its core businesses
of Automotive (Kolbenschmidt
Pierburg), Electronics (Aditron) and Defence
(Rheinmetall DeTec). In each of
these markets, Rheinmetall is among
the leading international players.
Rheinmetall’s group of consolidated
companies was substantially widened
in 1999 through the 12-month inclusion
of the Belgian-Dutch SRH Marine-
Holding (SRH Marine), the Danish EuroCom
Industries (ECI), as well as the
Dutch Eurometaal, and through the pro
rata temporis consolidation of the
Swiss Oerlikon Contraves and the American
KUS Zollner Division. A contrary
result was produced by the divestment
of Jagenberg’s Packaging Technology
division as of 31 December 1999, whose
income statement data is still included
in the figures below while its balance
sheet data is not. In all other respects,
the Jagenberg group is still fully
included in the fiscal 1999 figures. Oerlikon
Contraves and Eurometaal have
been integrated into the Defence sector,
Zollner into the Automotive sector.
SRH Marine and ECI, both operating in
the marine electronics market, as well
as STN Atlas Marine Electronics, still a
part of the Defence Sector in the previous
year, are now all grouped under
EuroMarine, which in turn is assigned
to the Electronics sector.
In 1999, the consolidated world sales
of the Rheinmetall group totaled €
4.515 billion (up 9 percent). Total 1999
sales break down as follows: Automotive
34 percent, Electronics 24 percent,
and Defence 30 percent. Engineering
(Jagenberg) accounted for ten percent
of group sales and the financial holding
Office Systems for two percent.
Automotive managed to raise the
high sales volume of fiscal 1998 by
another 4 percent to € 1.525 billion,
thanks to both the newcomers and organic
growth. Electronics generated
sales of € 1.103 billion, up by 68 percent.
Discounting the first-time inclusion
of EuroMarine, the gain was 5 percent.
Sales by Defence were 15 percent
higher at € 1.332 billion, due to the acquisitions.
Sales by Engineering drop-
Newsline
Stockholders’ newsletter of Rheinmetall AG: orders at an all-time high
Reengineered and back on track
ped € 64 million (minus 12 percent) in
1999 to € 470 million. Whereas Packaging
Technology sales rose marginally
compared with the previous year, Paper
Technology business nose-dived
due to the worldwide weak investment
propensity by the paper industry (down
€ 74 million, minus 21 percent).
The order situation at the Rheinmetall
group is very good. During fiscal
1999, orders worth € 4.738 billion were
received, 18 percent above the high
year-earlier figure. Orders on hand
climbed 28 percent to € 4.140 billion.
The remarkable growth in order intake
and backlog (an all-time high for
Rheinmetall) is due to both changes in
the group of consolidated companies
and a number of mega-contracts awarded
to Defence (including the Leopard
2 for Spain). Orders booked by Automotive
added up to € 1.530 billion (up
4 percent). Air Supply/Pumps (Pierburg)
and Pistons were the prime growth
generators. At a total € 1.101 billion
in 1999, Electronics succeeded in
acquiring 62 percent more orders, one
of the reasons being the larger group
of consolidated companies. Order influx
by Defence in 1999 reached €
1.549 billion (up by € 420 million, 37
percent). As of 31 December 1999, Defence
had an order backlog of € 3.219
billion (up by € 869 million or 37 percent).
At € 484 million, orders booked
by Engineering were up by 6 percent.
Whereas orders contracted by Packaging
Technology climbed 23 percent,
order intake by Paper Technology fell 5
percent, due to the troubled market.
Expenditure for intangible and tangible
assets in fiscal 1999 came to €
290 million, € 63 million above amortization/depreciation
and € 74 million
higher than the expenditure volume of
1998, mainly due to increased spending
by Automotive.
The Rheinmetall group’s results for
1999 showed a sharp dip. The operating
result (preliminary figures) totaled
€ 70 million (compared to € 174 million
in 1998) and the pretax profit amounted
to € 30 million (1998: € 147 million).
The net loss for the year was € 7 million
(1998: net profit of € 140 million).
By selling Jagenberg and thoroughly
restructuring STN Atlas Elektronik,
Rheinmetall has taken the necessary
10
steps for a significant improvement in
earnings in 2000. Additionally, the selling
of the Mauser Waldeck financial
holding, which broke even in 1999,
has allowed the group to shed a
hitherto poor earner. In the current
fiscal year 2000, Rheinmetall will reachieve
the good operating profit position
of earlier years. Moreover, the disposal
of Jagenberg is expected to yield
an additional gain for fiscal 2000.
At € 60 million, Automotive generated
a pretax profit matching the high
level of the previous year. As then, Air
Supply/Pumps (Pierburg), Pistons and
Plain Bearings were the most successful
divisions. As a result, it proved possible
to offset the weaker result of the
first half of the year in the course of the
second. In fact, this dynamic performance
during the latter half of 1999
will continue into the first half of 2000.
At € 20 million, the pretax profit of
Electronics matched that of the previous
year. The annual result also takes
into account expenditure in
connection with the closedown or liquidation
of companies outside of
Germany belonging to the former KIH
group. Due to the exceptional poor
performance by STN Atlas Elektronik,
Defence shows a pretax loss of € 9
million for 1999. The figures for STN Atlas
Elektronik include considerable
amounts related to the nonrecurring
expenditure for tapping new markets
and restructuring parts of the business,
which represent important investments
in the future.
On 31 December 1999, the Rheinmetall
group employed 32,859 persons
(up 9 percent). The rise is mainly due
to the newly consolidated companies,
like-for-like the workforce was down
by around 600 at the end of 1999.
The outlook: the year 2000 is a period
in which the Rheinmetall group is
back on the success track, with present
performance signaling growth
and earnings as a result of the actions
initiated. Orders on hand are at an alltime
high. Rheinmetall is becoming increasingly
global, with non-German
business now accounting for more
than 60 percent. The target for 2000:
just under € 5 billion sales, a pretax
profit of € 100 million, 30,000 employees.

Newsline
‘Milestones’ distinction for Rheinmetall AG
Growth leads to new
position on market
Düsseldorf. 18 companies operating
on international and domestic markets,
including Rheinmetall AG (Düsseldorf),
won the ‘Milestones’ prize
awarded for the very first time a few
weeks ago. The Ministry of Trade and
Small and Medium-sized Businesses,
Technology and Transport of North Rhine-Westphalia,
the Boston Consulting
Group and the Handelsblatt publishing
group which sponsored this competition
for the first time intend to
award this distinction for trend-setting
business achievements associated
with the German state of North Rhine-
Westphalia at regular intervals in the
future. The Düsseldorf-based Rheinmetall
group received its distinction in
the Business Migration category for its
successful business expansion policy
in the automotive and defence technology
sectors in the recent past.
Speaking on the occasion of the first
‘Milestones’ award on 29 January
2000, Wolfgang
Clement, Minister
President of the
state of North Rhine-Westphalia,
pointed out that
this German state
intends to pursue a
new industrial policy
in the future:
“Instead of subsidizing
businesses,
we hope to create a
framework which
will promote the initiative
of the industry”.
Clement remarked
that this
new business
award will contri-
Marinette, WI
bute towards this process in future,
and that “the outstanding entrepreneurial
achievements distinguished
with this prize should encourage younger
businesses in particular.”
Dr. Volkhard Hofmann, chief executive
of The Boston Consulting Group
GmbH & Partner, Dr. Heinz-Werner
Nienstedt, spokesman of the management
board of the Düsseldorf-based
publishing group Handelsblatt GmbH
and Peer Steinbrück, formerly Minister
for Economic Affairs and now Minister
of Finance in North Rhine-Westphalia
all commented on the distinction much
to the same effect. Minister of Finance
Steinbrück, for example, emphasized
that this business prize which has been
awarded for the first time fits well into
the economic policy (of North Rhine-
Westphalia) with its strong focus on
small to medium-sized businesses since
the distinction is bestowed on future-oriented
business achievements
with a model character. “Unfortunately,
this potential frequently lies dormant
in obscurity. It is (therefore) especially
important that the broader public
should find out about these trend-setting
strategies – this being beneficial
not only for the businesses as such but
also for others who can learn from the
achievements.”
The high-carat jury distinguished 18
companies in six different categories.
Leamington/Canada
Auburn Hills, MI
Fort Wayne, IN
Greensburg, IN
Greenville, SC
Nova Odessa
Brazil
Thionville
France
Abadiano
Spain
One important reason for winning the ‘Milestones’ award has been that the Kolbenschmidt
Pierburg group has increased its customer-focus and customer-satisfaction
through the significant expansion of its production and sales sites worldwide.
Other winners besides Rheinmetall AG
included businesses like LSG Lufthansa
Service, Preussag, Schering, Steag
Microparts, Schwarz Pharma, Pneumant
Reifen and Garant Schuh.
Rheinmetall AG was awarded the distinction
in the Business Migration category
on grounds of its successful
growth strategy, especially during the
last three years, having consistently
used and expanded its core capabili-
11
Germany (10 sites)
Usti/Czech Republic
Lanciano/Italy
ties in the Automotive and Defence
sectors. The migration processes (acquisition
of Kolbenschmidt AG and
STN Atlas Elektronik GmbH) assessed
by the jury have led to the following
developments:
★ In the Automotive sector, the
group has developed into an internationally
renowned systems supplier
with a range of products for “every
aspect of the engine”. In this context,
customer-focus and customer-satisfaction
have been increased consistently
through the significant expansion
of production and sales sites
throughout the world. Today, the
Automotive sector is one of the top 15
in Europe and in the top league of international
OEM-independent automotive
suppliers.
★ In the Defence sector, the group has
rounded off its systems capabilities in
the army technology sector with the
acquisition in late 1996 of STN Atlas
Elektronik GmbH,
as the manufacturer
of electronic defence
systems.
One direct effect in
this context has
Shanghai
China
been the sustained
networking of
hardware capabilities
in the weapons,
ammunition
and vehicle sector
with electronic
competence in the
field of command
and communication
systems (combination
of mechanical
and electronic
systems).
Overall, the Rheinmetall group has
adopted a new strategic position as a
result of the two migration processes
in the defence and automotive industry
distinguished by the ‘Milestones’
award. Moreover, the earning power
and goodwill of the group (as the basis
for further growth) have increased significantly,
factors which have ultimately
also helped to secure existing and
create new jobs.

Newsline
CeBIT 2000: Aditron’s premiere at the trade fair
New products
highlight capabilities
Hanover. For seven days, from 24
February to 1 March, the exhibition
grounds in Hanover were once more a
mecca for the high-tech industry. As in
earlier years, the CeBIT 2000 which is
the world’s most important trade fair
for information and telecommunication
technology, served as the perfect
technical forum for this branch of the
industry. Over 750,000 visitors, more
than 7,800 exhibitors who were well
and truly satisfied with the CeBIT, some
415,000 square meters of exhibition
area, and innumerable technical
and technological innovations – reason
enough for the organizers of the
event to delight in record figures. Joining
the world of bits and bytes: the
newly formed Aditron AG represented
by its subsidiaries Hirschmann, Preh
and CKS displaying their exhibits with
numerous novelties to the interested
public in halls 11, 17 and 23.
At this year’s CeBIT, Richard Hirschmann
& Co. presented innovative products
and trends
from the fields of
communication
and data technology.
At the spacious,
two-level stand of
Aditron AG in hall
17, which the Hirschmann
divisions
Car Communication
Systems and MultimediaCommunication
shared with
the Aditron subsidiary
CKS Systeme,
Hirschmann presented
an extensive
antenna program
for mobile applications
such as radio reception, carphone,
satellite navigation, fleet management
and telematics.
The new dual band mobile radio antenna
MCA 1890 TWIN for the D and E
net attracted large crowds. This so-called
“on-glass” antenna with a futuristic
drop design does without the conventional
antenna rod, so that it can be bonded
either onto the exterior of the rear
window of the vehicle or onto the inside
of the windscreen. The planar antenna
GPS 1890 PL for combined navigation
and mobile radio operations was also a
great success with visitors. Measuring
20 mm in height and having a diameter
of only 65 mm, it is currently the smallest
antenna of its type available on the
market. Combined antennas of this type
are, for instance, used in telematic systems
like the GPService Pilot from Siemens
with which drivers simply have to
push a button to get quick help in the
event of an emergency or breakdown.
Multimedia was the keyword for
communication systems presented at
the Aditron stand. Nowadays, digital
TV and radio programs as well as data
signals for online services like Internet
and telephony can be made available
at low cost and high speed not just in
Full Service Transport Networks but also
in domestic distribution networks.
Hirschmann’s exhibits in Hanover included
the components needed for
such networks like digital signal pro-
Attracting many visitors: the exhibition stand of Aditron AG in hall 17.
cessing facilities, optical transmitters,
receivers and amplifiers. A large chart
informed visitors about the structure
of modern telecommunication networks,
showing the path from the signal
source via satellite, directional and
terrestrial transmitter systems as well
as TV networks with optical or electrical
transmission to the end user.
Eberhard Gauger, the exhibition manager
of Aditron AG, struck a positive
12
An eye-catcher: the new dual band
mobile radio antenna MCA 1890 Twin
from Hirschmann, an on-glass antenna
of futuristic drop design.
balance of the seven days at the CeBIT
in Hanover: “The number of visitors
calling at our stand, especially specialists
from abroad, was distinctly higher
than in 1999. Our Car Communication
Systems and Multimedia Communication
divisions will continue to rely on
the trend-setting effect of the CeBIT as
the world’s most important exhibition
for information and communication
technology in the future, too. The excellent
location of the Aditron stand
offers an ideal platform for attracting a
broad public”.
At its 130 square
meter stand in hall
11 (this hall was
the center point for
data networks),
the Automation
and Network Solutions
division demonstrated
that
Hirschmann is presently
the only
company offering a
complete and comprehensiveproduct
program for
data communications
for the industry
and office sectors.
Besides the Ethernet Rail family
developed specifically for use in the
industrial environment, one particular
highlight shown was the high-power
Backbone Switch Mach 3000 presented
to the public for the very first time
at the CeBIT. This switch transmits electronic
data at speeds far greater
than the velocity of sound. A high
transmission rate is the pre-condition
(Continued on page 13)

Experts talking: Nicola Digiovinazzo,
sales representative of Preh-Industrietechnik,
presenting the new 15” touchscreen
system from Preh-Werke.
(Continued from page 12)
for the real-time capability of data networks,
i.e. the uninterrupted transmission
of audio and video data. Visitors
were able to convince themselves of
the capability of the system there and
then: equipped with a joystick and
networked 3-D glasses, they moved
through virtual offices, factory buildings
and landscapes shown on a large
screen, and the impression was deceptively
real. Other highlights at the
trade fair included the new software
HiVision 5.0 which, in combination
with the Mach 3000 product family allows
an automated network management
across different items of equipment,
and the Workgroup Switch
GES24TP for seamless transition of up
to 24 fast Ethernet connections to a faster
Gigabit Ethernet infrastructure.
Rüdiger Förster, marketing and sales
manager of the Automation and Network
Solutions division concluded
that “the CeBIT is and will continue to
be an important exhibition for us.” He
was generally pleased with the response:
“Overall, we have secured our
position as the world’s only supplier of
Ethernet components for the office
and industrial sector and have thus
been able to confirm our capabilities
against our competitors operating on
global markets.”
CKS Systeme GmbH (Karlsruhe/Hagen)
also presented its advanced operations
control and information systems
for fire brigades, rescue services
and police departments at the
joint Aditron stand. The application
software CKS-112, being an operations
control system tailored specifically to
Newsline
Sales representative Erhard Friedrichs
(l) from Hirschmann explaining the
function of the Backbone Switch Mach
3000 to a visitor.
CeBIT 2000: Aditron’s premiere at the trade fair
New products...
the needs of fire brigades and rescue
services, attracted considerable interest.
This system is used for acquisition,
assignment and alarming of emergency
services, including operational
support and planning. With its integrated
chart material and large databases
as well as standardized interfaces, the
CKS-112 is open for existing systems
and also later extensions.
One important order for planning and
delivery of such an integrated operations
control system for Düsseldorf airport
was signed on the first day of the
trade fair in Hanover. In its first extension
stage, the system with an order value
of more than one million German
marks will control operations of the airport
fire brigade from 2001 onwards.
Further highlights from CKS were the
CKS-110 control system designed especially
for police operations and the
management and information system
CKS-plus; this tool is used to manage
the resources of various security forces,
to document the costs of police
assignments and to compute the related
accounts.
Preh-Werke from Bad Neustadt a. d.
Saale presented their innovative data
entry and POS keyboards at their traditional
site in hall 23. The successful
12” Touch Commander family has been
extended to include the new 15”
Touch Commander MC 15. Its swivel-type,
height-adjustable display and keyboard
make it particularly comfortable
and easy to operate, even from different
positions. The touchscreen/monitor
system is simple to use and is particularly
well suited for trade, the hotel
business, banks and movie theaters.
13
DUS-village-north
Worldwide
interest
Cannes/Düsseldorf. Rheinmetall’s
real estate management company
Rheinmetall Immobilien Management
GmbH (RIM) is presently
working on a property development
project concerning an area of
180,000 square meters in the Derendorf
district of Düsseldorf. RIM
presented this interesting project
entitled DUS-village-north – a project
which has also attracted the attention
of international investors –
at the joint stand of Düsseldorf &
Partners on the occasion of the MI-
PIM in Cannes between 8 and 11
March this year (the MIPIM is one of
the leading real estate exhibitions
in the world). RIM which operates
throughout Germany is a 100% subsidiary
of Rheinmetall AG; its tasks
are corporate real estate management,
project development and control
as well as facility management.
General plans for this property in
Düsseldorf-Derendorf have already
been elaborated with the relevant
authorities of the city of Düsseldorf.
These plans also allow for the
results of a town planning competition
which was launched to collect
ideas. The underlying objective of
the plans that are to be materialized
in cooperation with external
partners and interested parties is
to create a new site for living and
working, incorporating all infrastructural
functions as well as the
retail businesses, restaurants and
leisure time facilities. The municipal
development area will offer large
open areas and parkland, and a
modern technical infrastructure.
A development plan is currently
being prepared for half the property
in cooperation with the city of
Düsseldorf. Existing plans envisage
some 200,000 square meters of
gross floor area, of which about 40
percent will be for high-quality
housing and the remaining 60 percent
for attractive business, office
and administration areas. All the
essential requirements for the area
such as e.g. municipal structures,
traffic connections, the provision
of green spaces etc. and the utilities
have already been developed.

Newsline
14
REVIEW AND PROSPECTS: Discussions and deliberations during the second Rheinmetall management conference held on
20 January this year focused not only on the group’s operating and strategic perspectives particularly in the current business year
and for the medium to long term future but also on a detailed review of the development of the Düsseldorf-based group since 1980,
including the (preliminary) figures for 1999. Michael Deaver had been invited to speak as a guest to the approx. 300 top and middle
level executives of the Rheinmetall group who had traveled to Düsseldorf, the capital of North Rhine-Westphalia, from 15 different
countries. Deaver was deputy chief of staff under President Ronald Reagan (1981 to 1989) and is now vice chairman of Edelman
Public Relations Worldwide, one of the world’s top PR agencies. The photographic impressions on these two pages of Newsline underline
once again that the new communication center of Rheinmetall AG is used as a platform for contacts and intensive discussion.
Newsline
15

Newsline
Dr. Hans U. Brauner and Dipl.-Math. Klaus Eberhardt :
“We should all feel
like entrepreneurs”
Düsseldorf. Here are some impressions
from Rheinmetall’s second management
conference with translated excerpts
from the speeches held by Dr.
Hans U. Brauner, at that time chairman
of the supervisory board of Rheinmetall
AG, and Dipl.-Math. Klaus Eberhardt,
chairman of the executive board
of Rheinmetall AG.
Dr. Hans U. Brauner:
All of us executives at Rheinmetall
should feel like entrepreneurs. If we
don’t act accordingly, working in a
partnership with one another, we will
not be able to manage a group like
Rheinmetall.
★
It is essential that the social competence
of the management should grow
as a role model. These are the emotional
rules of conduct. Having confidence
and having the courage to do what
is necessary – as virtues. In recent
days and weeks, we have all witnessed
discussions on the question of trust in
politics. The question of trust and courage
is always topical.
★
The subject of loyalty as the willingness
to follow others is self-explanatory.
Yet the real question is: what is worth
more? Should loyalty be put above the
truth? I have no doubts whatsoever about
this question: the truth should always
have priority. It would be wrong
to say one cannot tell the truth out of
loyalty to others. It is just not right.
★
Legality as an obligation is self-evident.
What is important is communication
both inside and outside the
group: we should deal decently with
one another inside the group and
communicate with each other, yet we
should also communicate with others
to the extent expedient, telling the truth
to create transparency.
★
It is better to tell the truth earlier than
too late. If something unpleasant
needs saying quickly, this is still easier
to “digest” than to push it aside and
suppress it.
★
Besides, the integrative capability as
the balance of power of centrifugal forces
is obviously a point. It may sound
very simple but we all know very well
that centrifugal forces are also active in
our group; this is perfectly normal. The
business units don’t always want the
same as the holding and the holding
may think it is the hub of the world.
Much like the spokes of a wheel. We
have spokes everywhere. Obviously,
there has to be a balance of power. We
need excellent managers for our central
departments but it is equally important
to have good managers controlling
the individual companies belonging
to our group. All of this has to
be held in an equilibrium.
★
What conclusions can we draw from
the development of our management
values? We have above-average, high-
Dr. H. U. Brauner
ly qualified and highly motivated managers,
some 30 to 35 belonging to
the top executive level and about 350
on the medium executive level, working
as a team with a spearhead.
★
We manage our business with intelligence
and feeling. We have 34,000
employees working for our group. We
have a sense of responsibility for them
and their families.
★
We have created exemplary management
values and try to impart these inside
and outside the group.
★
To sum up the development of our assets:
our qualitative values have shown
a very positive development over the
last twenty years. Our flop rate was low,
with only four percent. The only thing
one might refer to as a flop was Mauser
16
Klaus Eberhardt
Waldeck AG through which we lost over
100 million German marks. Yet compared
to what we have achieved overall,
that makes up for only 4 to 5 percent.
Merger and acquisition bankers congratulate
us on achieving a hit rate of
95 percent with our acquisitions.
★
We will not only maintain but will also
increase these values in the coming
years. Unfortunately, and this is something
I personally find very disappointing,
we have only partly managed to
communicate this positive development
to the outside world in terms of a
positive impact on our market prices.
★
One important factor is that we
should increasingly and openly focus
on our three core sectors Automotive,
Electronics and Defence. In doing this,
we will make the development of Rheinmetall
more transparent and give the
market price greater momentum.
★
In terms of increased value, Heimann
is presently our best horse. If we were
ever to need money, Heimann would be
the obvious candidate for the New Market
to generate money. But we aren’t
that far yet. What I am actually trying to
say is that Heimann is presently the
company generating the greatest profits.
★
In twenty years, we have achieved an
increase in value of 2.3 billion German
marks.
★
My legacy to my successors is that I
genuinely hope my vision will come
true: we should reach sales figures of
between 15 and 20 billion German
marks in the coming years, with 60
percent through acquisitions and 40
percent using our own resources.
Dipl.-Math. Klaus Eberhardt
I am increasingly fascinated by this
group which has given me – and hopefully
also you – the opportunity to unfold
my entrepreneurial activities. The
advancement of a company with a turnover
of formerly 700 million German
marks to the present-day level of 9 billion
marks and the increase in the company
value of 2.3 billion marks would
have been inconceivable with the mentality
of a simple employee. This is what
Rheinmetall has to offer and I rate this
highly every single day. The culture differs
fundamentally from that of other
companies I have worked for.
★
I am fascinated by the fact that we do
(Continued on page 17)

1979
30%
70%
(Continued from page 16)
not only have a high-gloss brochure
postulating our mission statement and
our visions but that these visions are in
fact very much alive in the company:
continuity and loyalty. Indeed, there is
a fundamental difference between
wrapping a corporate culture in highgloss
paper and actually trying to bring
these virtues to full blossom. I remain
convinced of the Rheinmetall group, of
its chances on the market and of the
biggest asset which isn’t visible in a
balance-sheet: of its excellent management
team. By which I mean you.
★
I look forward to working with you and
to a personal dialog with you. I am someone
who likes communicating and
who does not always strictly follow hierarchical
levels. I therefore look forward
to meeting you and to holding personal
discussions with you. I intend to visit
you in your labs, your companies at home
and abroad, and in your plants this
year. I will naturally have to face up to
this statement in a year’s time.
★
We have made progress on the market
– something which is very pleasing.
Compared to last year, our order
intake is up by 17.6 percent. Orders on
hand have therefore reached an historical
all-time high with well and truly 4
billion German marks. This development
is encouraging.
★
The overall trend is upwards, growth
is possible in all sectors. And there is a
good balance between the three mainstays
of our group.
★
We are pursuing a strategy of growth
outside Germany and we are increasingly
developing from a national to an
Newsline
international corporation. This is why I
find it particularly positive that some
20 percent of those of you here today
represent non-German activities.
★
In 1998, we had some 8,000 employees
or 28 percent of our workforce abroad.
At the beginning of this year,
this figure had reached 40 percent.
The question of how we can integrate
our non-German executives in our concepts
for management development
will have to be given very thorough
consideration in this context. In my
opinion, we are not really a truly international
group yet. We do business
abroad but we are going to have to
work on a multi-national culture.
★
The year 1999 was distinguished by a
forward-looking strategy and by active
portfolio management. This means,
we cannot just acquire businesses. In
future we will make acquisitions if these
are deemed appropriate at the time
but we will also actively continue the
strategy of portfolio management, i.e.
what matches well with the pure business
of our three sectors and what matches
less well.
★
I believe we have a realistic budget. I
would like to commit you to do everything
in your power to assure that we
attain this budget. This is an absolute
must. In our discussions on corporate
planning and strategy, we consciously
accepted your plans – projected upwards
as bottom-up planning for the
individual sectors. We, as the executive
board, and you too will have to take
this obligation to attain our targets
very seriously. ★
Allow me to briefly address the ratings
which range from AAA to D. If one com-
17
39%
2000e
Sales*: 0,7 8,1 9,0 9,0
Net income**: 13 273 –7 150
Employees: 5700 30 200 34 000 31 000
Automotive Electronics Defence Engineering
*) in billion DM
**) in million DM
1998
37%
13% 22%
28%
With a sales increase to a present level of nine billion marks, Rheinmetall is concentrating on Automotive, Electronics and Defence.
10%
1999
33%
34%
23%
35%
26%
pares where the best, biggest and proudest
of companies DaimlerChrysler
stands or where a corporation like Mannesmann
stands, Rheinmetall is on a level
with Mannesmann for the long-term
rating. This shouldn’t make us self-confident,
but it does show that we have attained
an absolute top position where
industrial companies are concerned.
★
Ladies and gentlemen, the confidence
which the financial community has
placed in us was primarily a question
of convincing management. Allow me
to thank you for this once again. This is
obviously a subject which is equally
binding the other way round.
★
We must do everything in our power
to attain our targets for the year 2000.
Putting it bluntly, it is evident from the
profitability figures that 2.5 percent return
on sales is nothing. Yet we
shouldn’t set ourselves targets which
are unattainable. It will be rated as a
great success if all our plants, and all
the companies belonging to our three
sectors reach the budget targets we
have set.
★
I would challenge you to act as entrepreneurs.
Implement the plans you
yourselves have prepared. It will be
hard work. Markets change but not all
markets are saturated. Saturated managers
are far worse. We are all entrepreneurs.
★
The plans for the year 2000 are realistic
and encouraging. A backlog of orders
of four billion euros – others
would be delighted to have such a sound
basis. We have achieved growth
and have become more global. These
are qualitative claims.

Newsline
Successful market entry for KS Bronzinas Ltda.
Components produced “in-house”
Nova Odessa/St. Leon-Rot. Official
starting shot: the new production site
of KS Bronzinas Ltda. at Nova Odessa
in Brazil was officially inaugurated on
2 February this year in the presence of
numerous officials – including the
German consul in Brazil, Dr. Hans Ulrich
Spohn. Bushings made of Permaglide
and heavy-metal steel materials
are already manufactured in large
quantities for the Brazilian and German
markets at the plant which is a
subsidiary of KS Gleitlager GmbH (St.
Leon-Rot). Production activities will be
extended to include engine bearings
and thrust washers within the next
year. Customers of the company which
presently has ten employees include
renowned automotive suppliers like
Keiper, Bosch, Valeo, New Hübner and
Edscha.
KS Gleitlager GmbH has been represented
by its Brazilian subsidiary KS
Bronzinas in Nova Odessa on the premises
of KS Pistões (piston manufacture)
not far from the city of Sao Paulo
since the end of 1997. Klaus-Jürgen
Hedden, spokesman of the management
board of the parent company KS
Gleitlager GmbH points out that one
of the main reasons favoring this step
which naturally also reflects the strategy
of internationalization and globalization
pursued by Kolbenschmidt
Pierburg “has been the proximity to
the market and to our customers in
Nico novelties at
Christmas World
Trittau/Frankfurt am Main. The
Nico group which is a member of
Rheinmetall produced its best ever
result last year. In 1999, the group
with 600 employees achieved sales
of around 180 million German marks,
of which 120 million marks alone were
attained on international markets
with large fireworks for special
events and New Year’s Eve celebrations.
The share of pyrotechnical products
in 1999 rose by 60 percent
worldwide. Apart from the obvious
Millennium effect, managing director
Hanns-Jürgen Diederichs attributes
Obviously delighted about the inauguration of the new production hall of KS
Bronzinas Ltda.: consul Dr. Hans Ulrich Spohn (third from r), shown here with
(from l to r) Jan Abmeier, project manager for start-up of plain bearing production
in Brazil, Dieter Moser, management board member (engineering) of KS Pistões
Ltda., Klaus-Jürgen Hedden, spokesman of the management board of KS Gleitlager
GmbH, Americo Rajczy, commercial manager of KS Pistões Ltda. and Dr. Dieter
Seipler, chairman of the executive board of Kolbenschmidt Pierburg AG.
Brazil.” Another important factor
prompting the group’s commitment
in Brazil was that customers had requested
the availability of a second
supplier directly on the Brazilian
market.
It has been a successful undertaking
as demonstrated by the official inauguration
of the production site of KS
this huge increase not only to the
new products which have been received
favorably on the markets but also
to the expansion of distribution
channels. With its portfolio of products,
the Nico group is now the largest
supplier in Europe.
Hardly had Nicos’s rockets been
fired at last year’s Millennium festivities,
when the fireworks specialists
presented their very latest products
for celebrations at the end of this
year. Presentations at the Christmas
World between 29 January and 2 February
2000 in Frankfurt am Main
included the “hammer rocket”
which will produce entirely new
effects in the sky at the end of the
year.
18
Bronzinas Ltda. Some 3.2 million German
marks have been spent on the
approximately 3000 square meter production
hall, of which about one sixth
will be sub-let to Pierburg to produce
pumps. Added to this, the site offers
approx. 600 square meters of office
space.
To quote Hedden: “We had a good
start here in Brazil, as is underlined by
the 7.5 million bushings (which is more
than double last year’s figure) produced
during the past business year.
And we are growing fast: approx. 13
million Permaglide products will leave
our new plant at Nova Odessa this
year. In the first quarter of 2001, our
range of products will be expanded to
include engine bearings and thrust
washers for General Motors and
Volkswagen.”
The upward trend is also underlined
by the medium to long term prospects
for the as yet very young plain bearing
subsidiary. Hedden noted that the
company aims to achieve sales in the
order of ten million marks in three to five
years and – given this background
– to increase its workforce to 30 or
more.

Divisions
Business
Units
Lead
Companies
Naval Systems
Surface Vessels
Underwater
Mine Hunting
Systems
for:
STN Atlas Elektronik
GmbH
More and more importance is being
attached to the mission-readiness of
the armed forces since the main task
of the German Army – as recently defined
by the Chief of Staff Army, Lieutenant
General Helmut Willmann –
will consist primarily in collective defence
beyond national borders. Defence
operations within the alliance
and peace-keeping missions outside
Germany are expected to increase in
future. Besides the undisputed high
training standard of the armed forces
in Germany, the mission-readiness of
its special forces will depend very largely
on the technological standard of
the systems and equipment available
to the forces.
Defence spending cuts – especially
in the investment sector – which have
been demanded for many years now
have not only destroyed more than
150,000 highly skilled jobs in the defence
industry. We have also lost our
technological lead as a supplier of the
armed forces as a result of these cutbacks
so that we have literally slipped
to a position of insignificance. We have
only managed to retain a significant
ranking as a supplier of systems
and equipment for the army.
Speaking at the 36th Munich conference
on security policy, the US
Secretary of Defense Cohen remarked
that “we should not continue to reduce
our budgets and look to the US for
help.” In saying this, he openly challenged
the Europeans to stop further
financial cutbacks in the defence sector.
Reduced spending is contra-productive
and causes very serious damage
to the national and European
defence capability. The industry –
and particularly also Rheinmetall De-
Tec AG – have repeatedly drawn attention
to this undesirable development.
By virtue of selective mergers,
acquisitions and cooperations,
Rheinmetall has
managed to concentrate
the technologicalcapabilities
as a complete
supplier of systems,equipment,
weapons
and ammunition
for the armed for-
ces on land and
has established
Newsline
Rheinmetall DeTec AG
Simulation
Simulation
Training
STN Atlas Elektronik
GmbH
Cross-border
consolidation continues
its position as a leading supplier of
systems solutions ranging from sensors
to weapons as well as naval platforms
on an international scale. We
have been able to secure minimum
capacities at a level which is absolutely
vital both with regard to profitability
and also to the equally important
19
Vehicle Systems
MaK
System
Ges. mbH
Army Systems
Air Defence
Army and Air Force
Oerlikon
Contraves
AG
Mario Gabrielli
Vetronics/
Systems for Aircraft
STN Atlas
Elektronik
GmbH
Weapons and
Ammunition
Large Caliber
Rheinmetall
W&M GmbH
Medium Caliber
Oerlikon
Contraves
AG
aspect of retaining essential knowhow,
and this level should certainly
not drop further.
The hesitant demand in the domestic
sector despite the political intent
to maintain national sovereignty
through an independent armaments
industry and to limit the damaging effect
of the loss of further jobs will not
suffice to utilize these resources. The
export business can and will have to
make a contribution, even if this can
only be limited. This limitation has to
be made because the stringent export
regulations for armaments affect
competitiveness. It remains to be seen
what effect the new guidelines passed
as a single-handed effort in Germany
without the involvement of the industry
will have within the framework of
the intended European harmonization
of armament exports. Our industrial
partners in Europe will acknowledge
this self-restraint favorably but find it
difficult to comprehend.
Our executives will have to manage
their business so that the capabilities
of the Rheinmetall DeTec group gain
recognition while simultaneously allowing
for the justifiable interests of
the individual company. The most important
pre-condition for this will be
that we do everything in our power to
promote the employees’ identification
with the group and to increase the
sense of “togetherness” under the
umbrella of Rheinmetall DeTec AG.
Mario Gabrielli*
*Mario Gabrielli (57), member of the executive board
of Rheinmetall DeTec AG (Ratingen)

Rheinmetall DeTec AG and its subsidiaries
Competence in defence technology
Ratingen/Düsseldorf. Against a backdrop
of mergers and acquisitions in the
European defence industry, Rheinmetall
AG of Düsseldorf moved last year to
consolidate its own defence technology
assets. Since 1 July 1999, Rheinmetall’s
army technology units (Weapons
& Ammunition, Systems & Equipment)
have been welded to the group’s defence
electronics activities to form
Rheinmetall DeTec AG, a new European
center of defence technology expertise
and excellence. A qualified manufacturer
of complete systems and a singlesource
supplier of vital military technologies
(electronics, weapons, ammunition
and armored vehicles), Rheinmetall
DeTec AG is a match for the increasingly
tough competition it now faces
from other European companies, as
well as the growing challenge posed by
the US defence industry. In other
words, as a member of the Düsseldorfbased
Rheinmetall group, Rheinmetall
DeTec AG offers the combined competence
for the national and international
defence sector.
Since 1990, the defence technology
arm of Rheinmetall AG – whose units
are now led by Rheinmetall DeTec AG –
has helped force the pace of consolidation
in the defence industry both at
home and abroad.
A vigorously pursued,
systematic
policy of acquisition
and cooperation
means that
substantial strategic
potential has
been amassed,
enabling the
group to meet the
challenges of the
changed geo-political
boundary
conditions in the
long term.
1990: Rheinmetall
GmbH takes up an
initial 60% interest
in MaK System
GmbH of Kiel, a
company owned
by Fried. Krupp
GmbH. The range
of products offered
by MaK System
Newsline
Gesellschaft also includes special vehicles,
used, for instance, in demining
operations. In 1992 the company becomes
a wholly owned subsidiary of
Rheinmetall.
1992: In a two-step process, Rheinmetall
GmbH acquires first 70%, and then,
in 1993, 100% of WNC-Nitrochemie in
Aschau am Inn, a manufacturer of gunpowder,
propellant powder and combustible
ammunition components.
1995: Rheinmetall Industrie GmbH,
the successor to Rheinmetall GmbH
and the precursor of Rheinmetall Industrie
AG, takes over Mauser-Werke
Oberndorf Waffensysteme GmbH of
Oberndorf.
1996: Rheinmetall Industrie AG acquires
a 33.3% interest in the Dutch company
Eurometaal N.V. of Zaandam.
1997: Rheinmetall Industrie AG prepares
for future changes in the defence
technology sector by reorganizing its
corporate structure. To improve its ability
to co-operate on the national and
international level, the operational
units are spun off and converted into
legally autonomous corporations.
The Weapons & Ammunition division
of Rheinmetall Industrie AG is transferred
to the newly founded corpora-
The German Army is equipped with one of the most powerful
and flexible training systems. The combat training center located
at Altmark and developed by STN Atlas Elektronik (Bremen)
enables the simulation of combat sequences without having to
use expensive practice ammunition while simultaneously allowing
the effective monitoring of training achievements.
20
The future has already started: a model
of GPS-based artillery ammunition.
tion Rheinmetall W&M GmbH, in Unterlüß
and Ratingen. The Systems &
Equipment division is absorbed by
MaK System Gesellschaft mbH of Kiel.
The acquisition of 51% of Bremenbased
STN Atlas Elektronik GmbH significantly
strengthens Rheinmetall
AG’s defence electronics capacity.
1998: In a major stock swap transaction,
Rheinmetall Industrie AG buys a
55% interest in Nitrochemie Wimmis
AG from Switzerland’s SM Schweizerische
Munitionsunternehmung of
Thun, Switzerland, transferring a 45%
interest in Nitrochemie Aschau GmbH
to SM. To ensure unified management
of both firms, the holding Nitrochemie
AG is set up in Wimmis, Switzerland,
with Rheinmetall in charge of industrial
operations.
Rheinmetall Industrie AG takes over
the defence technology component of
Buck System GmbH in Neuenburg/Fronau,
which is re-founded as Buck Neue
Technologien GmbH.
1999: Foundation of Rheinmetall De-
Tec AG in Ratingen as the legal successor
to Rheinmetall Industrie AG.
In order to bolster its position in the
medium caliber sector and establish
an even wider presence in the European
market, Rheinmetall DeTec AG increases
its stake in the Dutch corporation
Eurometaal Holding N.V. of The
Hague to 66.6%
(Continued on page 21)

Rheinmetall DeTec AG and its subsidiaries
Competence in...
(Continued from page 20)
By taking over Oerlikon Contraves AG
of Zurich, Switzerland, Rheinmetall De-
Tec AG augments its expertise base in
air defence technology, becoming a
system integrator in the medium caliber
sector.
At the end of 1999, Rheinmetall De-
Tec acquires the defence technology
assets of IWKA Aktiengesellschaft of
Karlsruhe. These include KUKA Wehrtechnik
GmbH of Augsburg and Henschel
Wehrtechnik GmbH of Kassel, a
leading system supplier of wheeled armored
vehicles. The move should further
consolidate Rheinmetall’s longterm
market position as a leading European
supplier of ground forces
equipment.
With annual sales of around 1.7 billion
euros (approx. DM 3.4 billion), and
more than 10,000 employees, Rheinmetall
DeTec has the critical mass it takes
to be one of Europe’s leading
single-source suppliers of
weapons, ammunition,
armored vehicles
and defence electronics.
Today, the
company
is a competentpartner
of the armed
forces of
Germany, NATO and
other friendly powers, playing a crucial
role in the development and coordination
of complex projects. Thanks to its
size and competitiveness, the company
is contributing decisively to-
Newsline
wards securing the
core defence technologycompetencies
both at home
and abroad.
In January 2000,
Rheinmetall DeTec
AG reorganized its
subsidiaries –
which also include
TZN ForschungsundEntwicklungszentrum
Unterlüß
GmbH, an R&D
center jointly operated
by the German State of Lower Saxony,
Rheinmetall and a number of locally
based medium-sized firms – into
four divisions: Naval Systems, Simulation,
Army Systems, and Weapons and
Ammunition. This has resulted
in a tightermanagementstructure,
greater proximity
to the
market, and independent
profit centers.
The clear organizational
structure
is also encouraging a
stronger orientation to customer requirements.
In brief (see also the organizational
structure of the restructured Rheinmetall
DeTec group):
★ The Naval Systems division consists
of the units: Surface Vessels, Underwater
and Mine Hunting Systems; the
21
An essential element of the Leopard 2 A6 main battle tank:
the 120 mm smoothbore gun developed by Rheinmetall W &
M GmbH. In conjunction with other modifications, a barrel
elongated by 130 cm increases the muzzle speed and enhances
the effect of the KE ammunition. This weapon system L 55
– shown in the lower part of the picture – is compatible with
the existing battle tank types used by NATO forces.
division is controlled by STN Atlas
Elektronik GmbH.
★ The Simulation Systems division, likewise
run by STN Atlas Elektronik,
contains the Simulation/Training unit.
★ The Army Systems division is made
up of three business units: Vehicle Systems;
Air Defence for the Army and
Air Force; and Vetronics and Systems
for Aircraft. The lead companies are
MaK System Gesellschaft mbH in Kiel,
Oerlikon Contraves AG of Zurich, and
STN Atlas Elektronik GmbH in Bremen.
The Vehicle Systems unit is home to
MaK System, telerob, and the defence
technology components of the KUKA
and Henschel companies (the latter
two still pending approval from the Federal
Monopolies Commission in Berlin).
Grouped together in the Air Defence
unit are Oerlikon Contraves AG and
its subsidiaries Oerlikon Contraves Pyrotec
(Zurich, Switzerland), Oerlikon
Aerospace Inc. (Saint-Jean-sur-Riche-
(Continued on page 22)
A joint project: the self-propelled howitzer 2000, the most advanced artillery system of its kind presently available in the world.

(Continued from page 21)
lieu, Canada), Oerlikon Contraves
S.p.A. (Rome, Italy), Oerlikon Contraves
GmbH (Stockach, Germany), Oerlikon
Singapore Pte. Ltd (Singapore)
and Contraves Advanced Devices
Sdn.Bhd. in Malacca, Malaysia. The
business unit Vetronics and Systems
for Aircraft is controlled by STN Atlas
Elektronik.
★ The Weapons and Ammunition division
consists of two business units:
Large Caliber (run by Rheinmetall
W&M GmbH) and Medium Caliber (run
by Oerlikon Contraves AG). Large Caliber
is made up of Rheinmetall W&M,
the Nico group, Nitrochemie, Buck
Neue Technologien, Eurometaal and
GIWS; Medium Caliber is composed of
Oerlikon Contraves AG and Mauser-
Werke Oberndorf.
During its 110-year history, Rheinmetall’s
role as a defence contractor has
evolved from a developer of weapon
systems to a supplier of complete systems
and a wide range of services to
the armed forces of Germany and
other friendly powers. Moreover, the
new structure of the DeTec group of
companies matches the changing
long-term needs of its customers.
Thanks to a wide range of high-mobility,
high-performance systems and
equipment, Rheinmetall DeTec AG and
its subsidiaries are fully able to meet
the current and future requirements of
Newsline
Rheinmetall DeTec AG and its subsidiaries
Competence in defence technology
conventional main
force and rapid reaction
elements
alike – and at a fair
price. Technologies
developed
and realized by
the Rheinmetall
DeTec group have
proven their worth
in the operations
of SFOR, IFOR and
KFOR. As an all-round
supplier of
technology for the
army, Rheinmetall
DeTec offers a wide
array of military
equipment, ranging
from weapon
systems and ammunition
to light
combat and support
vehicles to artillery
systems and
main battle tanks
equipped with the
very latest in fire
control technology.
For naval units,
Rheinmetall DeTec
supplies global
positioning, command
and combat
control systems,
as well as torpedoes;
the group also
provides system
management
for complex procurement
projects,
e.g. the construction
of mine hunting
vessels. Its air
force systems includestate-of-theart
flight simulators
and aircraft
weapons.
Ever since the
company’s foundation
by Heinrich
Designed for use on board the multinational MRCA Tornado,
the automatic BK27 aircraft gun of Mauser-Werke Oberndorf
is also operated in connection with other weapon systems
such as the Swedish Gripen fighter.
one of Europe’s leading defence contractors
– particularly in the field of systems
for the army – Rheinmetall has
long been the trusted partner of numerous
European defence forces. Ultimately,
the strength of Rheinmetall DeTec
AG lies in its ability to focus the combined
competence and expertise of its
subsidiaries, which are briefly introduced
below:
Naval Systems
STN Atlas Elektronik GmbH, which
encompasses the Rheinmetall DeTec
divisions Naval Systems, Simulati-
Erhardt in 1889, on/Training and Army Systems, inclu-
Isus is the command and control system for submarines the name Rheinding the units Surface Vessels, Under-
combining all elements of a modern C2-system. This inclumetall has been water and Mine Hunting Systems,
des the functional integration of all sensors and effectors, re- synonymous with Simulation, Training and Vetronics &
al-time processing of data as well as the display and proces- cutting edge, top Systems for Aircraft, is the group’s elsing
of such data on identical and therefore fully redundant quality defence ectronics specialist, offering extensive
multifunction consoles. technology. As
(Continued on page 23)
22

The light short-range air defence system LeFlaSys – Asrad
export version here – is an air defence missile system.
Rheinmetall DeTec AG and its subsidiaries
Competence in...
(Continued from page 22)
expertise in virtually every area that is
important for the naval forces. The Bremen-based
company develops and fabricates
products for civil and defence
applications, serving customers both
at home and abroad. STN Atlas Elektronik
offers a wide range of products,
including signal processing and radar
technology, navigation and communications,
sonar and high frequency
technology, optics and optronics, as
well as unmanned air vehicles, virtual
reality digital visual systems, and command
and combat control systems.
Underwater Systems
STN Atlas Elektronik’s underwater
activities include sonar technology
and systems for submarines, e.g. command
and control
systems as
well as hydroacousticsensor
systems.
These systems
enable submarines
to quickly
process incominginformation
and take
whatever actions
are necessary.
Other
subsurface systems
from
STN Atlas Elektronik
include
underwater vehicles
– e.g.
mine disposal
vehicles – and
naval weapons,princi-
Newsline
pally heavy torpedoes.
Surface Systems
23
The STN Atlas ship handling simulator for the Royal Norwegian
Navy is equipped with a panoramic visual system.
For surface vessels,
too, the Naval
Systems division
offers not only
individual products
– e.g. electronic
equipment
for the operations
control centers on
board frigates –
but also complete
system chains ex- Adats is the only short-range air defence system in the world
tending from sen- capable of engaging ground and air targets alike. Amongst
sors to signal pro- other things, the system supplied by Oerlikon Contraves AG
cessing,integra- is equipped with eight ready-to-fire missiles.
ted command and
control systems, and effectors. The on-
Simulation
going improvement of these products Simulation & Training:
and systems, as demonstrated, for instance,
by the latest generation of
The Simulation & Training unit focu-
multipurpose consoles or the new acses
on the worlds of virtual reality and
tive towed arrays for locating submari-
intelligent training management. In
nes, underscore the company’s speci-
practically every case, this involves the
al expertise and technical competence
use of simulators to train personnel,
in this field.
almost invariably “full scope replica”
simulation systems. This means that
Mine Hunting Systems
the actual item of equipment is recrea-
STN Atlas Elektronik’s role as prime ted on a 1:1 scale: a truck simulator es-
contractor for mine hunters of the sentially consists of a real driver’s cab,
German Navy is an outstanding ex- a navigation training simulator is esample
of its world class standing in sentially the bridge of a ship. The com-
this sector. The products and syputer generates the outside world. Distems
developed here for mine coungital visualization systems ensure pretermeasure
operations easily stand cise, real-time simulation of the surro-
up to those produced elsewhere, unding environment.
whether at home or abroad. In the ci- The process, naval and nautical sivil
sector, Vessel Traffic Services Symulation department develops traistems
(VTS) from STN Atlas can be foning simulators for naval academies,
und in ports and along busy water- shipping companies and navies. Flight
SMArt 155 DM 702 ways the world over.
(Continued on page 24)

(Continued from page 23)
simulation has first and foremost to do
with “part-task” trainers, i.e. simulators
used for instruction and training
in special tasks (for example, piloting
a helicopter at low altitude in the
dark). The company is also involved in
producing some of the extensive simulator
programs currently being developed
for the new Eurofighter jet. In
the field of ground vehicle simulation,
the products range from truck simulators
to combat simulators for armored
fighting vehicles, and even takes in rehabilitation
simulators that enable accident
victims, for example, to safely
determine, test and work on their ability
to drive a vehicle while undergoing
rehabilitation. The company’s battlefield
simulation products lend a whole
new dimension to military training in
the field, with each soldier and each
vehicle connected electronically to a
control center, resulting in highly realistic
tactical training operations.
Army Systems
Vehicle Systems:
★ MaK System Gesellschaft mbH of
Kiel develops and manufactures armored
vehicles for the armed forces of
Germany and other friendly powers. Its
range of defence technology products
includes tanks, combat support vehicles,
mine-clearing vehicles, light-armored
tracked and wheeled fighting
vehicles, artillery systems and generators.
MaK also specializes in the integration
of highly sophisticated defence
technology equipment, the design
of system-specific intelligent hydrau-
Newsline
Rheinmetall DeTec AG and its subsidiaries
Competence in defence technology
lic, electrical and
electronic components,
as well as
chassis, armor
and mine-clearing
technologies. Products
for use in
humanitarian demining
operations
round off the MaK
range of products,
along with ignition
systems for civil
and military
aircraft engines.
★ Founded in
1994, MaK subsidiary
telerob Gesellschaft
für Fernhantierungstechnik
mbH (Kiel) focuses on the development,
sale and distribution of equipment
and systems for EOD operations
and law enforcement agencies. Its range
of products includes customized
EOD/IEDD vehicles, remote-controlled
manipulator vehicles, explosive analy-
Sectional views of the medium caliber
ammunition types from Oerlikon Contraves:
sub-caliber, full-caliber and Ahead.
24
A top product from MaK System Gesellschaft mbH: the Keiler
mine clearance vehicle. This vehicle is used successfully by
the German Army, especially for humanitarian operations
within the framework of UN missions e.g. in Bosnia.
sis systems, as well as other special
EOD/IEDD equipment.
★ KUKA was founded in Augsburg in
1898, and has been active in the defence
technology field since 1915. In 1980
the company consolidated its defence
technology activities in KUKA Wehrtechnik
GmbH. For the past two decades the
company has concentrated on its core
competencies: automatic cannon mounts
and the development and manufacture
of armored turrets for light- and
medium-weight fighting vehicles. KUKA
made the two-man turret for the Marder
infantry fighting vehicle, the E6-11A1
one-man turret for the air-transportable
Wiesel – both of which are equipped
with a 20mm automatic gun – as well
as the one-man 606A1-CH turret (fitted
with a 12.7 mm machine gun) for Switzerland’s
Radschützenpanzer, a wheeled
armored vehicle.
Building on its longstanding experience
in the development and manufacture
of ammunition feeding systems
for automatic weapons, as well
as its expertise in the civil robotics
sector, KUKA has recently developed
semi and fully automatic ammunition
loading systems for large-caliber ammunition
in tanks and self-propelled
howitzers. A representative example is
the retrofit kit currently being manufactured
in-series for the service life
extension program of the M109 selfpropelled
howitzer. The company’s role
in the development and production
The Luchs scout vehicle and Fuchs transport vehicle of Henschel Wehrtechnik
GmbH in operation in Bosnia. (Continued on page 25)

The mortar training system from Nico
allows the entire crew to be trained
realistically and at an affordable cost.
(Continued from page 24)
of the AGSM and AGPG training simulators
on behalf of the German armed
forces in the 1990s provided KUKA
with an opportunity to prove its aptitude
in tackling problems relating to advanced
technologies.
★ Founded in 1810, and hence one of
the oldest arms manufacturers in Germany,
Henschel Wehrtechnik GmbH of
Kassel has for decades been a leading
specialist in the field of light- and medium-weight
wheeled and tracked armored
vehicles. The Jaguar tank destroyer,
the Marder infantry fighting vehicle,
the Luchs armored reconnaissance
vehicle, the Fuchs armored
transport vehicle, the Roland antiaircraft
tank, and the M113 family of
armored vehicles are just some of the
wheeled and tracked vehicles supplied
by Henschel to the armed forces of Germany
and other countries since 1956.
The defence technology division, independent
since 1996 and spun off by
Thyssen to KUKA Wehrtechnik GmbH
in 1997, and a member of the Rheinmetall
DeTec group since January
2000, accounts for approximately
60% of all wheeled and tracked vehicles
in the inventory of the German
armed forces; the company exports
its products to over thirty countries,
especially its wheeled armored vehicles.
Furthermore, Henschel is the
leader in modifying the American
M113 family of vehicles, offering more
than sixty variants. Other key products
and services of Henschel Wehrtechnik
Newsline
The Skyshield/35 mm revolver gun of Oerlikon Contraves AG represents the new
generation of air defence systems for the effective engagement of small and highspeed
targets.
Rheinmetall DeTec AG and its subsidiaries
Competence in defence technology
GmbH include the upgraded Marder
1A3 infantry fighting vehicle, the upgraded
transport armored vehicle 1
Fuchs ABC, mobile NBC laboratories
and NBC reconnaissance vehicles for
the German Civil Defence Agency.
Air Defence:
Oerlikon Contraves AG of Zurich,
Switzerland is the parent corporation
of a globe-spanning group of companies,
with locations in Switzerland, Italy,
Germany, Canada, Singapore and
Malaysia, and responsible for the
Single-base and multi-base propellant
powder of Nitrochemie AG and its two
subsidiaries Nitrochemie Aschau
GmbH and Nitrochemie Wimmis AG for
the entire range of ammunition (small
to large caliber) as well as for civil
applications (e.g. gas generators).
25
Rheinmetall DeTec group’s air defence
and medium caliber operations.
Oerlikon Contraves is active worldwide
in the development, manufacture,
distribution and after-sales service of
advanced air defence systems based
on medium caliber cannon and guided
weapons. The Swiss company’s
systems have been integrated in the
armed forces of more than forty countries.
Its internationally acclaimed landbased
air defence systems include the
well-established Skyguard/35mm
twin gun systems and the newly developed
Skyshield/35mm revolver gun
generation. Oerlikon Contraves develops
and builds radar fire control systems,
guns, and ammunition in-house,
making it the only company in the
world able to offer complete systems
from a single source. The company’s
Adats Air Defence Anti-Tank System rounds
off its portfolio of high-tech products.
The system can be deployed
autonomously or integrated into air
defence artillery batteries, thereby extending
the defence envelope. Adats
is manufactured and tested at the production
facilities and laboratories of
Oerlikon Aerospace Inc. in Canada.
Oerlikon’s revolutionary 35mm
Ahead technology gives the latest generation
of Skyshield and upgraded
Skyguard/35mm the decisive edge in
dealing with the new threat posed by
small missiles (e.g. cruise missiles
and anti-radar guided munitions). The
(Continued on page 26)

(Continued from page 25)
success of the Ahead technology has a
great deal to do with the Ahead ammunition
it fires, which is electronically
programmed as it leaves the muzzle of
the barrel, and releases 152 sub-projectiles
15 to 30 meters ahead of the
oncoming target.
In the domain of naval weapons, the
35mm Millennium naval gun based on
revolver technology assures optimum
protection against close-in threats, especially
small incoming aerial targets.
Other areas of activity include simulators
and training systems for air defence
units, including fire control and
weapon simulators for Oerlikon-Contraves
products.
Vetronics & Systems for Aircraft:
This business unit, controlled by STN
Atlas Elektronik GmbH, develops and
markets defence technology products
and systems for the army.
Its army and land systems unit can
point proudly to the LeFlaSys light air
defence system supplied to the German
armed forces, for example, or to
the fact that it has equipped most of
Europe’s Leopard main battle tanks
with fire control units. Furthermore, its
products ensure that vehicle commanders
always have a clear picture of
their surroundings, no matter what the
weather or time of day, and can pass
this information on virtually without
delay to all relevant echelons. Unmanned
air vehicles
form the primary
focus of the division’s
airborne systems
unit. Air vehicle
systems are
developed here for
a variety of missions,
including reconnaissance,electroniccountermeasure
and combat
operations.
The logistics section
works for civil
and military customers
alike. Its range
of services extends
from preparing
the complete
maintenance do-
cumentation for
the German Navy’s
fleet of ship-based
helicopters right
through to special
logistics tasks for
the European Airbus
program.
Weapons and
Ammunition
Large Caliber:
Newsline
Rheinmetall DeTec AG and its subsidiaries
Competence in defence technology
★ Rheinmetall
W&M GmbH, based
in Ratingen
and Unterlüß, develops,
tests and manufactures advanced
large caliber weapons and
weapon components, ammunition,
explosive charges, and special naval
products. The Rheinmetall W&M range
of products features globally fielded
tank main armament (e.g. the L44 and
L55 high-performance 120mm smoothbore
tank guns), artillery guns such
as the L39 and L55 155mm weapon systems,
as well as mortars; moreover,
at its Unterlüß site, Rheinmetall W&M
produces a diverse array of tank, artillery,
mortar and small arms ammunition.
Apart from R&D and production
units, Rheinmetall W&M’s Unterlüß
site also features a test site, the largest
private sector facility of its kind in
Germany.
★ Controlled by Nico-Pyrotechnik
Hanns Jürgen Diederichs GmbH & Co.
Products from KUKA include semi- and fully-automatic ammunition
feeding systems for large caliber munitions in
battle tanks and self-propelled howitzers. Our picture shows
the M109A3GE A2 of the German Army with an ammunition
feeding retrofit kit currently being produced in series.
26
Simulation of mortar and artillery fire at the combat training
center in Altmark near Magdeburg incorporating system
technology from Buck Neue Technologien GmbH.
KG of Trittau, Germany (founded in
1949), the Nico group also embraces
the companies Nico Feuerwerk GmbH,
Lünig Event GmbH and Silberhütte Pyrotechnik
GmbH. It is one of the
world’s leading producers of high-quality
pyrotechnic products. Nico, in
which Rheinmetall DeTec holds a 51%
stake, develops and manufacturers a
range of products that meets the complete
pyrotechnic requirements of the
modern military. These include training
systems and simulators, illumination
and signal rounds, colored
smoke and smoke canisters, law enforcement
and security systems, marine
rescue and signaling devices, small
and large fireworks, as well as aerosol
fertilizers.
★ Another member of the Rheinmetall
DeTec group is the lead company
Nitrochemie AG, located in Wimmis,
Switzerland, which controls Nitrochemie
Aschau GmbH of Aschau, Germany
and Nitrochemie Wimmis AG in
Wimmis as a single enterprise. Nitrochemie
AG acts as a general contractor
for explosive charge systems, and as a
partner in producing ammunition and
propellant charges for the German and
European market. Moreover, the company
is also a highly qualified supplier
of chemical intermediates and services
to the chemical industry; at the same
time, Nitrochemie is a partner in
national and international development
projects in the defence technology
sector. Among its most important
products are propellant powders,
combustible casings for propellant systems,
and chemical components.
(Continued on page 27)

(Continued from page 26)
★ As Rheinmetall DeTec’s specialist in
the field of defensive countermeasure
systems, Buck Neue Technologien
GmbH located in Neuenburg and Fronau
is responsible for developing, manufacturing
and marketing innovative
anti-sensor systems, i.e. active and
passive countermeasures for ground,
air and naval forces in the multispectral,
infrared and radar spectrums, together
with the accompanying training
and exercise systems. The company’s
products fall into five categories: naval
countermeasure, army countermeasure,
area countermeasure, ground,
aircraft countermeasure, and training
and exercise systems.
★ Rheinmetall DeTec AG has held a
major stake in Eurometaal N.V. (located
in Zaandam in the
Netherlands) since
1996. The company
makes medium and
large caliber ammunition
and ammunition
components. As a metal-processor,Eurometaal
enjoys a leading
position in the market
thanks to its superbly
engineered products.
Above all in the fields
of forming, machining,
heat treatment and
surface finishing the
company has made an
international name for
itself among civil and
military customers alike. Its array of
products includes ammunition for artillery,
tanks, howitzers and mortars, ranging
in size from 12.7 mm to 150 mm,
as well as hand grenades. Eurometaal
also produces special ammunition for
air force and naval use. Its main customers
are the European members of NA-
TO. Eurometaal also owns two companies
active in civil sectors, Heidel (automotive
engineering) and Intergas
(burners). The government of the
Netherlands owns one-third of Eurometaal
Holding N.V.
★ GIWS Gesellschaft für Intelligente
Wirksysteme mbH is a joint venture of
Diehl Stiftung & Co. and Rheinmetall De-
Tec AG, each of which holds a 50% share
in the company. GIWS is tasked with
Newsline
Rheinmetall DeTec AG and its subsidiaries
Competence in defence technology
developing and engineering the SMArt
155 sensor fuse artillery round, as well
as supporting the manufacture and
marketing of this innovative product.
The core competency of GIWS: taking
the lead in coordinating the development
and production of highly complex
intelligent munitions packed with electronics
and sensors. Furthermore, the
Nuremberg-based company has special
experience in the system analysis and
evaluation of advanced munitions.
Medium Caliber:
★ In the medium caliber sector, Oerlikon
Contraves develops and manufactures
20mm to 35mm automatic guns,
as well as ammunition for its own systems
(and those of other companies),
ranging in caliber from 12.7 mm to 50
mm. The 25 mm Oerlikon Contraves
Technology made by Henschel-Wehrtechnik: an air defence system of the
type Roland on a Marder chassis.
gun is now fielded by eleven countries,
five of which are members of NATO.
Oerlikon Contraves Pyrotec AG makes
ammunition for anti-aircraft systems
and vehicle-mounted guns. Its
product range extends from conventional
full-caliber and practice ammunition
right through to the company’s
highly advanced Ahead ammunition,
featuring a programmable fuse. Another
speciality: its 25 mm and 30 mm
sub-caliber Pfeil and Frangible rounds
designed for vehicle-mounted armament,
and fireable with a full spin. The
company’s standard caliber 25mm
ammunition is now in service with no
fewer than nine NATO nations.
In addition, the firing ranges and
testing areas at the company’s own
27
test center are well equipped with
technical measurement systems, enabling
sophisticated testing and trials
of ammunition, weapons and complete
systems.
★ Mauser-Werke Oberndorf Waffensysteme
GmbH, located at Oberndorf, is
another Rheinmetall DeTec center of
excellence in the field of medium caliber
weapons systems and ammunition
for land, air and naval applications.
Mauser-Werke is a world leader in the
development, manufacture and distribution
of medium caliber barrel weapons,
weapons systems and the accompanying
families of ammunition.
The company produces automatic
guns and accompanying ammunition,
systems for close-range defence,
aircraft weapons, training and exercise
systems, ammunition
testing equipment, as
well as naval weaponry.
Focusing squarely
on its high-tech core
competencies – sensor
and measurement
technology, laser and
high-performance pulse
technology, numerical
simulation and
actuator systems –
TZN Forschungs- und
Entwicklungszentrum
Unterlüß GmbH (Unterlüß)
carries out research
and development
work for government
and private-sector customers, its
primary mission being to develop,
test, optimize and help establish new
technologies. Founded in 1986, TZN is
jointly owned by Rheinmetall DeTec
AG, the German State of Lower Saxony
and a large number of medium-sized
companies. TZN offers a wide range of
products, services and systems in
such sectors as defence technology,
laser and systems engineering, with
its activities encompassing every phase
of development from feasibility studies,
computer simulations, systems
analysis and design evaluation, right
through to the building of prototypes
and pilot plants and the performance
of project-specific measurement campaigns.

Rheinmetall Defence Technologies
Competence Combined
In their own right, our subsidiaries
have always featured prominently
on the world defence technology
stage. Now, together, we’re establishing
a whole new dimension.
United under one banner, the companies
of Rheinmetall DeTec AG
are rapidly emerging as a major
international centre of defence
technology excellence. Because it
Rheinmetall DeTec AG
Pempelfurtstrasse 1
D-40880 Ratingen
Telefon +49 (2102) 902500
Telefax +49 (2102) 902831
www.rheinmetall-detec.com
brings together dedicated expertise
in the fields of ground forces
technology, aviation and air
defence systems, naval technology
and simulation systems, Rheinmetall
DeTec is a powerful and resourceful
partner for developing
and co-ordinating complex projects
on behalf of the defence forces of
NATO and other friendly powers.