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Investing.com -- German defence electronics group Hensoldt (ETR:HAG) plans to invest around €1 billion ($1.17 billion) over the next two years to meet a significant increase in orders from the German government, CEO Oliver Doerre announced Thursday evening.
Doerre revealed that the German government is now placing orders in quantities "10 to 20 times what we had in the past," compared to previous practices where it typically ordered small quantities through framework agreements.
The maker of radar systems for combat aircraft and air defence systems will make these investments between 2025 and 2027 to accommodate the incoming major orders.
Doerre noted that a new law designed to accelerate procurement procedures should facilitate financing for the company.
"We hope that we will also receive advance payments in future," he said, pointing out that previously payment was only made upon delivery.
Hensoldt projects its sales will nearly triple to approximately €6 billion by 2030, with an average annual growth rate exceeding 10%, driven by increased German defence spending.
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