Armin Papperger, CEO of the German defense company Rheinmetall, issued a stark warning that global arms stockpiles, particularly interceptor missiles for air defense systems, are on the verge of complete depletion due to the ongoing conflict with Iran.
In an interview with CNBC, the head of Germany’s largest defense contractor emphasized that the intensity of the fighting in the Middle East has created an unprecedented “shell shortage” on a global scale.
Arsenals in Europe, the US, and the Middle East are “empty or nearly empty.” Papperger estimates that if the active phase of the conflict continues for another month, the world could face a physical shortage of ready-to-use interceptor missiles.
The head of Rheinmetall called the use of expensive anti-aircraft missiles to destroy cheap Iranian kamikaze drones “madness” and a strategic mistake. He called for an immediate transition to combined systems: anti-aircraft artillery (like the Skyranger) and interceptor drones.
Despite Rheinmetall’s plans to increase production of artillery shells to 1.5 million per year by 2030, current capacity cannot cope with the “explosive” demand. The concern’s order book is already approaching €70 billion and is projected to double within a year.
“Nobody knows when this war will end. But we see that demand for missiles has become simply insane. We are negotiating with countries in the region, but the industrial cycle takes time, which we don’t have right now,” Papperger noted.