DUSSELDORF, Germany, Sept. 26 (UPI) -- A joint venture to tap the growing international demand for local defense structure has been formed by two German companies.
Rheinmetall AG and Ferrostaal GmbH have named the company Rheinmetall International Engineering GmbH, which will serve as either general contractor or sub-contractor to plan and implement turnkey industrial facilities.
"We're pressing ahead with our strategy of internationalization, moving into new markets as a system integrator in the defense industry," said Armin Papperger, chairman of the Executive Board of Rheinmetall AG. "Rheinmetall International Engineering is a highly significant step in this direction and one which gives us a unique position in the industry.
"Ferrostaal is a long-established German partner, a company that's been planning and managing the construction of industrial plants around the world for over 90 in regions which are highly relevant to our future undertaking.
From now on, we'll be able to market our extensive array of products in combination with the creation of local production facilities," he said.
Ferrostaal touted the opportunities the joint venture presents for the company and that it will also allow the company to expand its traditional oil and gas sector business into Asia and South America.
Rheinmetall and Ferrostaal have a 50 percent share in the joint venture. The deal requires approval from regulatory authorities.