Rheinmetall has begun the construction of a new ammunition factory at Unterlüß in northern Germany following a ground-breaking ceremony.
Dubbed Werk Niedersachsen, the facility is set to produce artillery ammunition, explosives, and rocket artillery components, eventually producing about 200,000 shells a year.
The manufacture of RDX explosives, ammunition charge components, rocket engines, and warheads may also take place at the plant.
Rheinmetall is shouldering the entire cost of the construction, estimated at 300 million euros ($323 million).
Rheinmetall CEO Armin Papperger said that the facility will set new standards by meeting the needs of the military in the midst of a regional ammunition shortage.
“The move reflects our sense of responsibility and resolve to contribute materially to the ability of our country and our NATO partners to defend itself,” he added.
Around 500 new jobs will be created to staff Werk Niedersachsen.
Expanding Production Worldwide
Rheinmetall’s investment in improving its ammo production comes amid the weapons shortage caused by the ongoing Russo-Ukrainian war.
Recently, it greenlit plans to expand its ammo plant in Hungary to produce 155mm and 120mm artillery shells.
The company aims to produce up to 700,000 rounds of artillery ammunition at its German, Spanish, South African, Australian, and Hungarian plants by 2025.
It has also announced future constructions of explosives and armored tank factories in Hungary and Ukraine.
