Establishment of Rheinmetall Group Purchasing; Marcus Gerlach heads new Groupwide purchasing organization

Since 1 January 2023 all purchasing activity of Rheinmetall AG has been bundled into a new Groupwide unit, 'Rheinmetall Group Purchasing', headed by Marcus Gerlach. Hitherto, cooperation within the Group was limited to partial sections of Purchasing, especially Non-Production Material. Because working together in this area proved so successful, expansion of cooperation and joint management to all parts of Purchasing was the logical next step.

A Rheinmetall-wide Purchasing unit offers the chance to benefit from existing know-how, allocating resources between divisions as needed, shaping processes more efficiently, and jointly pressing ahead with future projects such as digitalization.

External factors pose huge challenges to Rheinmetall and especially its Purchasing unit. As Marcus Gerlach explains, 'Besides high inflation, supply chains have been hit hard by the pandemic and the war in Ukraine. In addition, the ESG requirements - Environmental, Social, Governance, that is - are becoming increasingly stringent, meaning that we need to reconsider current processes and pool our resources.'

The new matrix organization will remain decentralized, with autonomous purchasing departments at division level. Throughout the Group, however, additional central teams are being set up to coordinate Groupwide purchasing activities and projects. This brings together the total purchasing power and purchasing expertise of the Group, enabling all Rheinmetall divisions to benefit and prepare themselves in the best way possible for future challenges.

In addition to his responsibilities as head of Rheinmetall's Materials and Trade division, Marcus Gerlach will lead the new organization. In his capacity as chief purchasing officer, he reports directly to Armin Papperger, chairman of the executive board of Rheinmetall AG. The new centralized Purchasing organization encompasses the following areas: Processes and Tools, Commodity Management Production Material, Commodity Management Non-Production Material, and ESG Supply Chain.

RHEINMETALL AG

Oliver Hoffmann

Head of Press and Public Relations

Rheinmetall Platz 1

40476 Dusseldorf

Germany

Phone: [phone]

Fax: [phone]

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