BERLIN, Feb. 25 (Xinhua) -- Europe's largest ammunition maker, Rheinmetall, plans to repurpose two of its automotive plants in Germany to focus primarily on defence production, according to a Reuters' report on Monday.

The move comes as European governments prepare to increase military spending amid ongoing tensions over the Ukraine crisis.

Rheinmetall said in an emailed statement to Reuters that its factories in Berlin and Neuss, which currently manufacture automotive components, would be transferred to its weapon and ammunition division under the proposed plans. The company added that while some automotive production would continue, the sites would operate as hybrid plants.

"The plants will benefit from Rheinmetall's industrial strength as a major supplier of military equipment, as well as from strong demand from customers in Germany and worldwide," the company said.

Rheinmetall also noted that no final decision has been made regarding the new structure. The company clarified that no explosives would be processed at the sites, which will instead produce protection and mechanical components for military use.

The report highlighted that the decision aligns with broader efforts by European leaders to establish a more independent defence strategy, following discussions at last week's Munich Security Conference. Enditem

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