German Defense Chief Armin Papperger in limelight due to Ukraine war

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Armin Paperger caused a stir this year in both Russia and the West when he said he wanted German arms conglomerate Rheinmetall to build its Panther tanks on Ukrainian soil.

Berlin has been pushing back for months against international pressure to send German Leopard II tanks to Ukraine for fear of escalating the conflict – now the chief executive of the country’s largest defense contractor is attracting the wrong kind of attention.

Former Russian President Dmitry Medvedev, who now serves on Vladimir Putin’s Security Council, issued a veiled threat to destroy the proposed plant making the Panthers, and to welcome it with a “salute” of Kalibr missiles and “other pyrotechnic devices”. swore to

But defense officials in Germany privately dismissed the plans as a publicity stunt. One at the time pointed to the 60-year-old’s reputation for controversy as “the typical paparazzi.”

The episode summarizes Papperger’s rise as a kingpin of Europe’s military efforts along with Rheinmetall, which since Russia’s invasion of Ukraine has become a company that investors can hardly find among Germany’s 40 largest companies. K Dax wanted to touch on the darling of the index.

The Bavarian, an avid hunter, has acknowledged that the war has “opened a new era” for the Düsseldorf-based group, which he joined in 1990 after an engineering degree and led for a decade. Shares in Rheinmetall have risen more than 150 percent since Putin launched the attack in February last year, as investors flock back to the industry on hopes of increased European defense spending.

Rheinmetall announced its latest deals this week – contracts worth nearly €6 billion for military vehicles and weapons, most of which came from a €100 billion military fund pledged last year by German Chancellor Olaf Scholz, as he was announced. zeitenwende, or a “turning point” in the country’s foreign and defense policies.

Pappergar has used his newfound prominence to become one of Europe’s most outspoken defense officials, often criticizing Berlin and other governments for not placing enough orders for Ukrainian military equipment.

But those who know him say that Pappergar’s demeanor has always been forthright. One described him as a “larger-than-life character”, while another said he had an “old-fashioned view on power” and that he was “genuinely charming but can be very aggressive”.

One of the people said, “His personality hasn’t changed – what has changed is he is now in the global arena.”

Pappergar’s desire to attract attention contrasts with the heads of rival German defense contractors such as Diehl and Krauss-Maffei Wegmann, family-owned companies that keep a relatively low public profile.

His thoughtless comments have raised tensions with KMW. After Papperger told a Swiss newspaper that Rheinmetall controlled the rights to some older models of the Leopard II, the Munich-based group – the tank’s original developer and one of Rheinmetall’s main partners on key products – filed a court injunction. But minutes before the two companies were due to meet in court in May, Rheinmetall stood down and withdrew Pappergar’s claim.

The animosity between the companies dates back years, according to industry insiders, who say that relations between their top executives had soured over previous attempts by Rheinmetall to take over KMW.

Another person who worked with Pappergar said that although his vocal style disappointed many of the companies with whom Rheinmetall collaborated, it “has become the standard that people have come to expect these days”.

Pappergar was not available for comment.

Stifel analyst Alexander Wahl described Papperger as an “aggressive” communicator on growth goals even before the war and said that “investors know this very well”.

He noted that Rheinmetall watchers had become accustomed to the sometimes outlandish announcements of its chief executive – for example Pappergar’s announcement before the war that Rheinmetall was considering making an electric bike. Wahl said, “We never heard about it again.”

Most recently, the company indicated it would start making compressors for heat pumps – a technology that is about to boom in Germany after the government announced it wanted to ban the installation of new oil and gas boilers.

“Now you have climate change and Pappergar knows how to manipulate the media,” Wahl said. “I think he wants to ride the wave of whatever’s new.”

While Pappergar has historically stood out against some in the secretive defense sector, one industry executive said, “He has a great understanding of the business, and he is highly respected in the industry for that”.

Following his comments about building tanks in Ukraine, in May Rheinmetall announced a “strategic partnership” with Kiev-owned defense contractor Ukroboronprom, saying it wanted to “bring together Rheinmetall and the existing state defense industry in Ukraine”. Will build a bridge between”.

The initial focus of the joint venture will be the repair of military vehicles returned from the front line, but an unspecified “later phase” will include making “select Rheinmetall products”.

The German press has noted that Peperger, who was paid €5 million last year, has enough incentive to keep Rheinmetall’s share price high. In February the Frankfurter Allgemeine Zeitung calculated that the value of his shares in the company had increased by €30mn since the start of the war.

The publicity attracted by the paparazzi could be good for dealmaking for a company whose every transaction has to be approved by Berlin because of the country’s military export regulations.

A person close to the company said, “Earlier, if you wanted to sign a deal, you had to act humble and bow your head.” Citing statements made to the press by Rheinmetall to pressure Berlin to send more military equipment to Ukraine, he said: “Now that has changed.”

Receive free Rheinmetall AG updates

we will send you one myFT Daily Digest Latest Email Rounding Rheinmetall AG News every morning.

Armin Paperger caused a stir this year in both Russia and the West when he said he wanted German arms conglomerate Rheinmetall to build its Panther tanks on Ukrainian soil.

Berlin has been pushing back for months against international pressure to send German Leopard II tanks to Ukraine for fear of escalating the conflict – now the chief executive of the country’s largest defense contractor is attracting the wrong kind of attention.

Former Russian President Dmitry Medvedev, who now serves on Vladimir Putin’s Security Council, issued a veiled threat to destroy the proposed plant making the Panthers, and to welcome it with a “salute” of Kalibr missiles and “other pyrotechnic devices”. swore to

But defense officials in Germany privately dismissed the plans as a publicity stunt. One at the time pointed to the 60-year-old’s reputation for controversy as “the typical paparazzi.”

The episode summarizes Papperger’s rise as a kingpin of Europe’s military efforts along with Rheinmetall, which since Russia’s invasion of Ukraine has become a company that investors can hardly find among Germany’s 40 largest companies. K Dax wanted to touch on the darling of the index.

The Bavarian, an avid hunter, has acknowledged that the war has “opened a new era” for the Düsseldorf-based group, which he joined in 1990 after an engineering degree and led for a decade. Shares in Rheinmetall have risen more than 150 percent since Putin launched the attack in February last year, as investors flock back to the industry on hopes of increased European defense spending.

Rheinmetall announced its latest deals this week – contracts worth nearly €6 billion for military vehicles and weapons, most of which came from a €100 billion military fund pledged last year by German Chancellor Olaf Scholz, as he was announced. zeitenwende, or a “turning point” in the country’s foreign and defense policies.

Pappergar has used his newfound prominence to become one of Europe’s most outspoken defense officials, often criticizing Berlin and other governments for not placing enough orders for Ukrainian military equipment.

But those who know him say that Pappergar’s demeanor has always been forthright. One described him as a “larger-than-life character”, while another said he had an “old-fashioned view on power” and that he was “genuinely charming but can be very aggressive”.

One of the people said, “His personality hasn’t changed – what has changed is he is now in the global arena.”

Pappergar’s desire to attract attention contrasts with the heads of rival German defense contractors such as Diehl and Krauss-Maffei Wegmann, family-owned companies that keep a relatively low public profile.

His thoughtless comments have raised tensions with KMW. After Papperger told a Swiss newspaper that Rheinmetall controlled the rights to some older models of the Leopard II, the Munich-based group – the tank’s original developer and one of Rheinmetall’s main partners on key products – filed a court injunction. But minutes before the two companies were due to meet in court in May, Rheinmetall stood down and withdrew Pappergar’s claim.

The animosity between the companies dates back years, according to industry insiders, who say that relations between their top executives had soured over previous attempts by Rheinmetall to take over KMW.

Another person who worked with Pappergar said that although his vocal style disappointed many of the companies with whom Rheinmetall collaborated, it “has become the standard that people have come to expect these days”.

Pappergar was not available for comment.

Stifel analyst Alexander Wahl described Papperger as an “aggressive” communicator on growth goals even before the war and said that “investors know this very well”.

He noted that Rheinmetall watchers had become accustomed to the sometimes outlandish announcements of its chief executive – for example Pappergar’s announcement before the war that Rheinmetall was considering making an electric bike. Wahl said, “We never heard about it again.”

Most recently, the company indicated it would start making compressors for heat pumps – a technology that is about to boom in Germany after the government announced it wanted to ban the installation of new oil and gas boilers.

“Now you have climate change and Pappergar knows how to manipulate the media,” Wahl said. “I think he wants to ride the wave of whatever’s new.”

While Pappergar has historically stood out against some in the secretive defense sector, one industry executive said, “He has a great understanding of the business, and he is highly respected in the industry for that”.

Following his comments about building tanks in Ukraine, in May Rheinmetall announced a “strategic partnership” with Kiev-owned defense contractor Ukroboronprom, saying it wanted to “bring together Rheinmetall and the existing state defense industry in Ukraine”. Will build a bridge between”.

The initial focus of the joint venture will be the repair of military vehicles returned from the front line, but an unspecified “later phase” will include making “select Rheinmetall products”.

The German press has noted that Peperger, who was paid €5 million last year, has enough incentive to keep Rheinmetall’s share price high. In February the Frankfurter Allgemeine Zeitung calculated that the value of his shares in the company had increased by €30mn since the start of the war.

The publicity attracted by the paparazzi could be good for dealmaking for a company whose every transaction has to be approved by Berlin because of the country’s military export regulations.

A person close to the company said, “Earlier, if you wanted to sign a deal, you had to act humble and bow your head.” Citing statements made to the press by Rheinmetall to pressure Berlin to send more military equipment to Ukraine, he said: “Now that has changed.”