Offset or Industrial Participation is a reciprocal trade agreement between a buying country and an exporting company of industrial goods and services. In most cases, Offset is a mandatory condition in the procurement of goods and services by government owned entities such as, but not limited to a Ministry of Defence. In addition, Offset or Industrial Participation is a key customer requirement in business transactions with state-owned military customers of Rheinmetall. Rheinmetall takes a pro-active approach towards Offset or Industrial Participation requirements with the intention to win customers and satisfy customers against minimal cost and risk for Rheinmetall.
The implementation of and compliance with this policy as well as the overall monitoring of Rheinmetall´s offset activities is ensured by the Corporate Offset Office which also assesses the business rationale for each offset activity based on a clear definition of services offered and a comprehensive and transparent calculation for remuneration.
Indirect offset activities within Rheinmetall relate primarily to purchase agreements with subcontractors of Rheinmetall that have no causality with the product that caused the offset obligation. Therefore, the beneficiaries of indirect offset activities are subcontractors, suppliers, research and development institutes and the like only. In most cases the beneficiaries of indirect offset activities are published in agreements closed with foreign government owned entities.