The Düsseldorf-based Rheinmetall Group is taking an important step in its strategic positioning and is separating from its activities in the area of small piston production. Rheinmetall and Comitans Capital AG have now signed a sale and purchase agreement for the entire small piston area. Rheinmetall is thus following its strategic objective of concentrating on new technological fields and alternative forms of propulsion in the future – as far as civil activities are concerned. It was agreed not to disclose the purchase price.
The purchase agreement covers Rheinmetall’s small piston division with all production sites. A total of around 3,650 people are employed in the plants in Neckarsulm/Germany, Marinette/USA, Celaya/Mexico, Nova Odessa/Brazil, Trmice/Czech Republic and Hiroshima/Japan as well as at two locations of the Chinese joint venture KSHP in Shanghai and Chongqing. Business operations and production will continue at all locations.
The transaction, which is still subject to regulatory approval, is expected to be completed by March 31, 2024.
Rheinmetall’s strategic realignment, which began in 2021, envisages that the group will reduce its dependence on products related to the combustion engine and divest itself of the entire piston business (small and large pistons). Since the beginning of 2021, activities in the piston area have been managed as a non-core business of the group. In a first step, the large piston area was sold to the Swedish group Koncentra Verkstads AB at the beginning of 2023.
Armin Papperger, CEO of Rheinmetall AG: “We are implementing what we announced. The impending final exit from piston production continues Rheinmetall’s strategic realignment. In the future, Rheinmetall will be more than ever a technology house that develops and produces innovative solutions – for our military customers as well as for our customers in the civilian sectors, especially in alternative drive technologies and hydrogen technology.”
“We have now found a very good buyer for the small piston area,” explains Marcus Gerlach, Chairman of the Materials and Trade Division. “As with the large piston area, we have also achieved our goal here: we are putting small piston production in good hands. Over the past few months, Comitans Capital AG has familiarized itself intensively with the necessary investments and changes required and is supporting the long-term strategy developed by Kleinkolben management.”
Comitans intends to manage the small piston division as an independent, independent company with an independent organization under the Kolbenschmidt Pistons brand. “With the support of Comitans Capital AG, we will position Kolbenschmidt Pistons as an independent and profitable company on the market in the long term,” says Klaus Semke, future CEO of Kolbenschmidt Pistons. “In addition to pistons for the passenger car segment, pistons will play an important role in the heavy-duty truck and off-highway segment.”
SOURCE: Rheinmetall