(Reuters) -German offset printing presses maker Heidelberger Druckmaschinen will enter the defence sector through a cooperation deal with defence tech specialist Vincorion, it said in a statement on Tuesday.
Vincorion, headquartered near Hamburg, develops, among other things, an emergency power generator for the Eurofighter, Europe’s flagship fighter jet.
Heidelberger said it will be “developing, industrialising, and building power control and distribution systems for Vincorion” as part of a memorandum of understanding between the pair spanning several years.
“In this way, the two companies will help boost technological sovereignty and safeguard domestic value chains,” it added.
Heidelberger shares rose 11% to their highest since May 2023.
It is the latest German company to branch out into the defence sector as European countries boost military spending by hundreds of billions of euros to build up long underfunded capacity following Russia’s invasion of Ukraine.
Since Donald Trump’s return to the White House and his renewed questioning of America’s commitment to NATO, Germany has committed to meet the alliance’s new target of spending 3.5% of GDP on defence by 2029 – faster than most European allies.
Shares of engine maker Deutz, which is also exploring opportunities in the defence sector, have leapt 90% this year on optimism that it could benefit from the planned surge in government spending.
Companies like defence electronics maker Hensoldt have poached workers from major auto parts suppliers Bosch and Continental as the sector struggles, while Schaeffler is among those looking to break into the defence sector.
(Reporting by Paolo Laudani in Gdansk, Editing by Miranda Murray, Kirsten Donovan)
