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Hensoldt expects orders boost from German defence spending

German defense supplier Hensoldt AG starts trading after IPO

(Reuters) - German defence electronics manufacturer Hensoldt is expecting a number of orders from the German government in the next quarter, its chief executive Thomas Mueller said in an interview to Reuters on Thursday.

This follows Berlin's record pledge to invest 100 billion euros ($110.21 billion) to beef up its military following the Russian invasion of Ukraine.

"Hensoldt will double its turnover in the next few years," Mueller said. This opens up the possibility of further European-wide consolidation, he added.

The producer of radar and high precision optics used in aircrafts, ships and tanks posted revenue of 1.7 billion euros last year.

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Mueller said the company had already expanded production capacity to meet increased demand.

"A radar every month - there was no such thing in the past," Hensoldt's chief said. The firm now aims to produce 10 radars this year and 15 from next year onwards.

Hensoldt's shares have more than doubled in value since the outbreak of the war in Ukraine, reaching their all-time high in mid-March this year.

Mueller was speaking as Hensoldt celebrated joining Germany's mid-cap MDAX index. It is the second German defence contractor to have significantly increased its market capitalization last year, following Rheinmetall's DAX entrance in early March.

($1 = 0.9074 euros)

(Reporting by Nette Nöstlinger, Timm Reichert and Andrey Sychev, Editing by Rachel More)