Rheinmetall acquires majority stake in South African plant engineering firm
Rheinmetall is expanding its plant engineering portfolio by acquiring a majority stake in South African specialist Resonant Holdings. The joint venture will focus on constructing production facilities for chemical products.
German technology group Rheinmetall is set to broaden its plant engineering portfolio with the acquisition of a majority stake in Resonant Holdings (Pty) Ltd, a South African firm specializing in plant engineering for chemical applications. An agreement for the joint venture, named Rheinmetall Resonant South Africa, has been signed, with Rheinmetall Waffe Munition GmbH holding 51% and existing Resonant shareholders holding 49%.
The newly formed entity is projected to have an annual sales potential exceeding EUR 100 million. The purchase price has not been disclosed, and the transaction is subject to customary regulatory approvals. This move addresses the increasing global demand for ammunition and the corresponding need for production facilities.
Rheinmetall aims to enhance its capabilities in ammunition production by vertically integrating further expertise. This acquisition will strengthen the company's capacity to independently plan, construct, and operate facilities for manufacturing chemical products, such as propellant powder and explosives. The company stated that this expansion is a direct response to growing customer requirements in the ammunition sector.
Resonant Holdings employs approximately 150 people and brings extensive experience in designing and building specialized plants, particularly for chemical and explosives production. Rheinmetall expects the partnership to leverage Resonant's expertise in chemical, energetic, and explosives technology, industrialization, and manufacturing. The company also plans to preserve Resonant's existing technology and workforce, while offering the South African firm global reach and access to new markets.