Rheinmetall has clinched a contract to build an explosive manufacturing plant in Hungary.
The German defense firm will begin building the factory in 2023, with production expected to start in 2027.
The contract is in the “low three-digit million-euro range,” covering the “supply of plant engineering, technology, and process know-how as well as the associated documentation, training, and all activities necessary to achieve full-scale production.”
Ammunition Shortage
The plant is being built in response to the ammunition shortage witnessed across Europe and within NATO due to the Russia-Ukraine war.
The explosives produced in Hungary will be used in a range of munitions such as artillery, tank, and mortar, promoting Europe’s “independence from overseas imports” of ammunition.
Rheinmetall to Be Primary Customer
The factory will be built and operated by a joint venture consisting of Rheinmetall and Hungarian state-owned N7 Holding.
Once built, the plant will be taken over by the Hungarian government. Rheinmetall will be the primary customer.
