From selling camping gear to supplying the army: German industry's grand shift

Germany's massive boost in defense spending is starting to transform parts of its economic sector, according to experts. Some companies that used to produce civil machineries or car parts are now manufacturing military goods.

The Bavarian battery assembler AXSOL is among the companies participating in the 'military gold rush'. What started off as a small camping gear provider is now supplying armies with container-sized power stations.

The combination of diesel generator and electric battery reduces the need for fuel transport convoys which are often an easy target in warfare.

Conventional generators "always need the supply of diesel," AXSOL founder Jürgen Zinecker told CGTN. "Our systems also work with photovoltaics, wind turbines, with fuel cells - so you have a much higher resilience."

The containers, which offer up to 50 times more energy than conventional generators, are costly and not easily sold on the private market. 

"If you don't want to stand still with economic development, the defense market gives you large opportunities." 

Thanks to Europe's boost in defense spending, Zinecker now supplies several NATO forces with his energy systems, expecting a rapid increase in revenue. "I expect the growth for this year to be about four times the turnover and next year even more."

It's not only battery producers that are jumping on the military bandwagon. A German automotive supplier has started to manufacture rocket parts and the country's iconic Volkswagen factories could soon produce tanks instead of cars as the weapons industry expands production in view of ever-rising orders.

"The German car industry is in the midst of a transformation process," Mario Holzner, Director at the Vienna Institute for International Economic Studies, told CGTN. "But now with this option of more demand for arms we will most likely see a shift into this direction, into producing all kinds of military products."

Eyeing perceived Russian military threats and diplomatic difficulties between Brussels and Washington, Germany laid out a 570-billion-dollar defense and infrastructure spending drive to boost its domestic military industry. Small and medium sized enterprises are figuring as key links in the industry's supply chain.

But Zinecker insists that Europe's arms build-up process will take time, as any new production usually takes up to four years to get running.