The armaments company apparently wants to enter the booming market for heat pumps. He wants to supply a German company that recently made headlines.
Battle tanks, rockets, rifles – and refrigerant compressors: The German armaments group Rheinmetall, which is best known as a manufacturer of military equipment, wants to get into the heat pump business. The “Handelsblatt” reports, citing corporate circles.
Rheinmetall wants to supply the German heat pump manufacturer Viessmann with compressors, a key component of heat pumps. Compressors compress the vaporized refrigerant in a heat pump and thus generate higher temperatures. Compressors are the heart of the heat pump.
“Largest single order” in the non-military sector
The order for the manufacture of refrigerant compressors is worth 770 million euros. Rheinmetall had already announced the deal in December 2022. It is “the largest single order that Rheinmetall’s non-military division has been able to win outside of the classic automotive business,” the company said on its website at the time. The order is part of his “diversification strategy”.
However, until now it was not known that the refrigerant compressors are intended for heat pumps. It was also only now that it became public that the client would be the major German producer Viessmann. The “Handelsblatt” refers to statements from both companies. Officially, however, Viessmann rejects the report: A spokesman said when asked by “Handelsblatt” that Rheinmetall had not been awarded a major order. “The company doesn’t supply us with compressors either.”
Concern about German key technologies
Viessman recently hit the headlines with its announcement that it would sell its air-conditioning division, which also includes the heat pump business, to air-conditioning manufacturer Carrier Global for €12 billion. The Viessmann Group will receive 20 percent of the purchase price in shares, making it one of the largest shareholders in the Florida-based company.
The sale of one of Germany’s largest heat pump manufacturers to a foreign owner sparked controversy over whether Germany could fall behind again in future technologies. The Rheinmetall deal could ensure that a German company becomes a leader, at least in the competitive market for heat pump compressors.
Viessmann could also benefit: “If Viessmann succeeds in switching the compressor reference to Rheinmetall, they will have a major competitive advantage,” the “Handelsblatt” quoted an industry expert as saying.
