Rheinmetall, a prominent German defence technology company, has taken a bold step to expand its global operations by establishing a new subsidiary in South Africa called Rheinmetall Resonant South Africa (Pty) Ltd. This development comes after receiving approval from the relevant authorities, allowing Rheinmetall Waffe Munition GmbH, a key business unit of the Rheinmetall Group, to secure a 51% stake in the joint venture. The remaining 49% is held by the existing shareholders of Resonant Holding, a South African engineering firm whose assets and subsidiaries have been almost entirely absorbed into the new entity. The parties involved have chosen not to disclose the purchase price, but the new company is poised to tap into a lucrative market, with an expected sales potential exceeding €100 million annually.
The creation of Rheinmetall Resonant South Africa is a direct response to the rising global demand for ammunition, a need that has become increasingly urgent due to geopolitical tensions, particularly the ongoing war in Ukraine. This subsidiary enhances Rheinmetall’s capabilities by focusing on the independent planning, construction, and operation of production facilities for chemical precursors such as propellants and explosives, essential components in ammunition manufacturing. Employing around 150 people, Rheinmetall Resonant South Africa brings specialised expertise in designing and building plants for chemical and explosive products, complementing Rheinmetall’s existing plant engineering business. This move strengthens the company’s ability to offer end-to-end services in the chemical, energy, and explosives technology sectors, as well as industrialisation and manufacturing.
Resonant Holdings, established in 1999 and headquartered in Gauteng, South Africa, has a rich history as an engineering consulting firm with a global presence, including branch offices in the United States, Australia, and Germany. The company has built a strong reputation for providing specialised engineering services across diverse industries such as metals, minerals, chemicals, oil and gas, and infrastructure. Beyond plant design, Resonant offers solutions like nitrogen oxide reduction, desulphurisation, dust control, green energy, and waste energy recovery. Its Resonant Nuteq division stands out for its work in nuclear, energy, space, explosives, chemicals, petrochemicals, mining, and oil and gas fields. Resonant has made notable strides in the energetic materials industry, leading research and development efforts for rocket and satellite fuels, thruster catalysts, and substrates for international clients. It has also supported solid rocket fuel research for a South African company and developed a groundbreaking multipurpose nitration plant—the first of its kind in South Africa—capable of producing advanced explosives like RDX, PETN, and NTO in a single facility.
For Rheinmetall, this partnership with Resonant Holdings is a strategic fit. It bolsters the company’s plant engineering expertise and expands its production capacity at a time when the demand for ammunition is surging. The war in Ukraine has depleted ammunition stockpiles across NATO countries, prompting urgent efforts to replenish reserves after years of reduced defence spending. This has translated into substantial orders for Rheinmetall, particularly in artillery ammunition, with a landmark €8.5 billion framework agreement with the German military for 155 mm shells being just one example. The company’s financial performance reflects this boom: in 2024, group sales grew by 36% to €9.751 billion, with the defence business alone increasing by 50%. The order backlog reached an all-time high of €55 billion, up 44% from €38.3 billion the previous year. Looking ahead to 2025, Rheinmetall expects group sales to rise by 25% to 30%, with the defence business projected to grow by 35% to 50%.
The Weapon and Ammunition segment has been a major driver of Rheinmetall’s success. In 2024, this division saw sales jump by 58%, from €1.756 billion to €2.783 billion, fueled by increased deliveries to Germany, other NATO countries, and Ukraine. Direct deliveries to these markets rose by €609 million, with the Spanish subsidiary Rheinmetall Expal Munitions playing a key role. In the first three months of 2025, the segment achieved record sales of €599 million, a 66% increase over the same period the previous year, driven by higher ammunition deliveries, including artillery and tank ammunition for NATO and Ukraine. Armin Papperger, CEO of Rheinmetall AG, captured the company’s momentum in March 2024, saying, “We have massively increased our capacities already and will continue to do so. Over the past two years, we have invested nearly €8 billion to build new plants, make acquisitions, and secure supply chains… Rheinmetall is on its way from being a European systems supplier to a global champion.”
The partnership with Resonant Holdings offers mutual benefits. For Resonant, it provides access to Rheinmetall’s extensive global network, opening doors to new markets and industries. For Rheinmetall, it leverages Resonant’s technical know-how and established presence in South Africa, where the company already operates through another joint venture, Rheinmetall Denel Munition (RDM). Formed with 51% ownership by Rheinmetall and 49% by South Africa’s state-owned Denel, RDM specialises in designing, developing, and manufacturing large- and medium-calibre ammunition. Its product range includes artillery projectiles (76 mm to 155 mm), propellant charges, pyrotechnic carriers, mortar bombs, 40 mm grenades, and missile subsystems, alongside plant engineering services for filling and lapping facilities. The addition of Rheinmetall Resonant South Africa builds on this foundation, creating a more integrated defence ecosystem in the region.
Rheinmetall’s expansion in South Africa aligns with its broader strategy to meet customer needs by delivering entire production facilities. As Papperger noted, “Rheinmetall is needed—customers are buying entire factories from us today. We must and will deliver.” The company is pursuing this goal through new plant construction, strategic acquisitions, and collaborations like the one with Resonant Holdings. Beyond South Africa, Rheinmetall has promising projects in the USA, the UK, Italy, and Ukraine, with numerous major orders in the pipeline to fuel further growth. The establishment of Rheinmetall Resonant South Africa, announced following the agreement to acquire a majority stake in Resonant Holdings in August of the previous year, is a clear example of this approach. It positions Rheinmetall to address the urgent needs of military forces worldwide by enhancing its ammunition production capabilities.
The ongoing conflict in Ukraine has laid bare the importance of maintaining robust ammunition reserves, a lesson not lost on NATO members like Germany and the UK, who are now racing to rebuild their stockpiles. This has created a windfall for companies like Rheinmetall, which is capitalising on the moment by vertically integrating further competencies. The acquisition of Resonant Holdings and the formation of Rheinmetall Resonant South Africa enable Rheinmetall to take greater control over the production of chemical products like propellant powder and explosives, ensuring it can meet the growing demand efficiently and independently.
In South Africa, this joint venture also holds promise for the local economy, potentially creating high-skilled jobs in engineering and manufacturing. With its expertise in plant design and its focus on innovative solutions, Rheinmetall Resonant South Africa is well-positioned to contribute not only to the defense sector but also to other industries like energy and chemicals. For Rheinmetall, the subsidiary represents a step toward achieving its ambition of becoming a global defense leader, delivering the production capacity and technical innovation needed to stay ahead in a rapidly changing world. As the company continues to expand its footprint and capabilities, Rheinmetall Resonant South Africa stands as a key piece of that vision, ready to generate over €100 million in annual sales and drive the next phase of growth.
