Full speed ahead into the armor Renk is Increasingly Focusing on Tank Transmission Components

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The defence contractor Renk has significantly ramped up production of its tank transmissions ...

Like other industrial conglomerates, Renk is increasingly shifting its focus to the defence sector. That’s because demand there is currently significantly higher than in the civilian sector. Emmerich Schiller, Renk’s Chief Operating Officer, comments on the current situation: “In 2023, we produced fewer than 600 tank transmissions. This year, we’ve already surpassed 800, and by 2030, that number will exceed 2,000.” Given the “turning point” proclaimed by politicians—as the defence boom is euphemistically called—the outlook for defence business is better than it has been in a long time. As is well known, the trigger was Russia’s attack on Ukraine. Accordingly, Renk plans to invest up to 325 million euros (approx. 377 million USD) in Germany by 2028 to advance digitalisation and expand production capacity. At the Rheine plant, the Renk executive has already commissioned new machines designed to accelerate the production of tank transmission parts. Compared to the past, this reduces the working time required for the components—known as planetary carriers—by approximately 60 percent. According to Schiller, the company is essentially switching from a craft-based operation to small-batch production. To this end, new machinery worth 20 million euros (approx. 23 million USD) has been purchased in Rheine in recent years. Additional machines are scheduled to be installed in the coming years, representing an investment of approximately 20 million euros as well.

The main battle tank will still be needed for decades to come

Until now, Renk in Rheine has produced almost exclusively components for the civilian sector—such as gearbox parts for container ships. By 2030, up to 30 percent of production is expected to be destined for the military sector. Currently, that figure stands at only about five percent, which includes items such as gearbox housings for frigates. The number of employees in Rheine is expected to rise from the current level of just over 450 to more than 500 by the end of the decade. Schiller notes: “We have a significant need for specialists here.” Incidentally, the tank transmissions are fully assembled at Renk’s main plant in Augsburg. Renk transmissions are installed, for example, in the Leopard 2 main battle tanks, which are gradually being phased out. In light of the war in Ukraine, some already believe that the future of conflict will be dominated by drones and that tanks will become obsolete. Schiller counters: “I am firmly convinced that battle tanks and other armored vehicles will still be needed for decades to come! I simply can’t imagine operating exclusively with drones on the battlefield.” Rather, it will be a matter of a combined combat force in which established combat systems and drones operate together. The events in Ukraine also demonstrate that drones are better suited for defence than for attack, where assertiveness is key.