Germany’s Rheinmetall said on Thursday it expected its annual defense sales to grow by an average 10 percent through 2020 on the back of orders from the German military forces, European Union defense projects and a shift to digital applications.

“In the coming years we expect an average of 2 billion euros in orders (per year) from the (German army) Bundeswehr,” Chief Executive Armin Papperger told journalists at a news conference.

Germany’s new governing coalition has agreed to add 10 billion euros ($12.4 billion) to the military budget over the next four years. Defence Minister Ursula von der Leyen has said further increases will be needed to rebuild the military after years of spending cuts.

Rheinmetall expects Germany to account for more than 30 percent of its defense business in the future, Papperger said.

Source: reuters.com