Home reports Country Rheinmetall is expanding its ammunition production capacity

++Rheinmetall Munitionsfabrik Varpalota_RHeinmetall — This factory in Várpalota (Hungary) will produce medium and large caliber ammunition for Hungary and other countries. (Photo: Rheinmetall)

Rheinmetall is expanding its ammunition production capacity

January 31, 2024

In the ammunition factory in Várpalota, Hungary, the capacity is being expanded from medium-caliber ammunition to large-caliber ammunition. The construction of the ammunition factory for the joint venture Rheinmetall Hungary Munitions Zrt, which is currently under the responsibility of the Hungarian N7 Holding, is going as planned, Rheinmetall writes in a statement. The second phase for large-caliber ammunition has now started.

Rheinmetall sees the project as a strategic investment to counter the shortage of ammunition that was already foreseeable before the start of the Russian war against Ukraine against the background of the expected demand in Europe and NATO.

Im Dezember 2022 erfolgte Rheinmetall zufolge in Várpalota die Grundsteinlegung für die ersten Teile des neuen Rheinmetall-Werks, in dem das Joint Venture Rheinmetall Hungary Munitions Zrt. künftig Munition für verschiedene Systeme herstellt. In der ersten Ausbaustufe sei das Werk zur Produktion von 30mm-Mittelkalibermunition befähigt, die künftig auch von den im ungarischen Zalaegerszeg durch Rheinmetall hergestellten Schützenpanzern Lynx verwendet werde. Der Betrieb soll im Jahr 2024 aufgenommen werden.

Mit der jetzt beginnenden Ausweitung „Várpalota 2.0“ wird das Werk nach Angabe von Rheinmetall von etwa 20 auf ca. 120 Hektar vergrößert und die Mitarbeiterzahl erhöht sich auf bis zu 200 Angestellte. Zudem werde die Produktpalette um zusätzliche Munitionstypen erweitert, vor allem 155mm Artilleriemunition für die Panzerhaubitze 2000 und 120mm-Munition für die Kampfpanzer Leopard 2 und perspektivisch den Panther KF51 EVO. Der Produktionsbeginn soll Anfang 2026 erreicht werden. Zudem plane Rheinmetall auch Entwicklungs- und Abnahmeaktivitäten in Várpalota.

This factory in Várpalota (Hungary) will produce medium and large caliber ammunition for Hungary and other countries. (Photo: Rheinmetall)

Part of this strategic capacity expansion for the production of ammunition in Hungary is also an additional factory for the production of explosives (RDX), which is being built in parallel on the same site and also in a joint venture between Reinmetall and N7 (ESuTreported). This means that Hungary is also making a major contribution to the security of supply of this fundamental raw material for ammunition production in Europe.

Part of the production in Várpalota is intended for the needs of the Hungarian armed forces, writes Rheinmetall. In addition, the international market is also to be supplied.

In addition to the newly built Rheinmetall Hungary Munitions Zrt plant, Rheinmetall already produces ammunition in Germany, Spain, Switzerland, Austria, Italy, South Africa, Australia and the USA. At Capital Markets Day in November 2023, Rheinmetall CEO Armin Papperger estimated the company's capacity for 155mm ammunition at 350,000 rounds (full shots) and announced an increase to 700,000 rounds by 2025. This means that – even taking into account the capacities of other companies in Europe and America – the demand – which has currently risen sharply due to high consumption in Ukraine – cannot be met. Consumption in Ukraine alone is estimated at at least around 5,000 rounds of 155mm ammunition per day. This results in an annual requirement of around two million shots. In addition, there is the need of nations to replenish their own ammunition stocks.

Editorial staff / gwh

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