26 March, 2024
Production line of 155mm artillery ammunition at the facilities of the Rheinmetall plant, July 6, 2023. Photo credits: Fabian Bimmer
German arms manufacturer Rheinmetall will receive funding from the European Union to increase the production of ammunition.
The press service of Rheinmetall reported on this.
For this, the EU has allocated more than €130 million in subsidies to Rheinmetall under the Act in Support of Ammunition Production (ASAP).
Hence, more than a quarter of the total amount of €500 million awarded by the EU to expand the production of 155mm artillery ammunition and powder will be channeled into a total of six projects by Rheinmetall AG’s European subsidiaries.
The program will support projects in Germany, Hungary, Romania, and Spain. The corresponding grant agreements are expected to be signed in May 2024.
“We are grateful that the European Union has placed its trust in us as one of the most important European suppliers of 155mm ammunition, to significantly consider us in its funding program,” Armin Papperger, CEO of Rheinmetall AG, said.
He noted that Russia’s war against Ukraine has revealed the great importance of artillery on the modern battlefield. Ukraine needs the ammunition, as well as to replenish the stocks of artillery ammunition of European armies.
Rheinmetall has been increasing its production capacities since 2022, and the company aims to produce up to 1.1 million artillery shells per year by 2027.
In addition, up to 1.5 million propellant modules and 3,000 tonnes of RDX explosives are to be produced annually starting in 2026.
Rheinmetall plans to set up at least four weapons manufacturing factories in Ukraine. The company stated that the factories in Ukraine would be for producing shells, military vehicles, gunpowder, and anti-aircraft weapons.
Arms manufacturer will also build a gunpowder factory in Romania to expand its ammunition production capacity. The investment is worth €400 million.
