Feb. 18 at 2:45 PM
$RNMBY BERLIN, Feb 18 (Reuters) - Rheinmetall (RHM +2,7%) has received the green light from the Italian government to start production at a plant on the island of Sardinia, the German defence company said late on Tuesday.
The Financial Times reported on the approval earlier on Tuesday.
The company welcomed the decision of the Italian government, which confirmed that the plant complies with environmental guidelines, Rheinmetall told Reuters.
"The production is planned to start shortly to sustain the demand of several EU, NATO and allied countries."
Rheinmetall has a strong presence in Italy. Together with the Italian group Leonardo (LDO +4,29%) the company builds tanks, among other ordnance.
It has invested around 50 million euros (
$59 million) in the Domusnovas site in the south of Sardinia, where the group intends to manufacture large quantities of explosives and guided missiles for NATO countries.