GERMANY’S defense industry lobby has warned that companies were looking into shifting production abroad in response to the country’s restrictive arms export policy.

    “All large defense contractors in Germany are assessing whether they can stay in the country in the long run,” Armin Papperger, the chief executive of Rheinmetall and head the German defense industry association, was quoted as saying by newspaper Sueddeutsche Zeitung on Saturday.

    Earlier this year, Economy Minister Sigmar Gabriel said he would tighten rules on arms exports, curbing sales to states such as Qatar and Saudi Arabia, whose purchases had previously helped make Germany the world’s third largest arms exporter.

    In August, Germany permanently halted Rheinmetall’s planned export of combat simulation equipment to Russia, going beyond newly imposed European Union sanctions that block future defense contracts.

    (SD-Agencies)