Rheinmetall receives over €130 million in EU funding to increase production capacities in the artillery sector

(To Rheimetall)

Rheinmetall receives over 130 million euros in funding from the European Union to increase ammunition production. Therefore, more than a quarter of the total sum of 500 million euros allocated by the EU under theAct of Support in Ammunition Production (ASAP, "Ammunition Production Support Act") to expand the production of 155mm ammunition and artillery powder will be targeted at a total of six projects by Rheinmetall AG's European subsidiaries.

The program will support projects in Germany, Hungary, Romania and Spain.

L'Act of Support in Ammunition Production is the first EU funding program for the expansion of ammunition production. 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”, said Armin Papperger, CEO of Rheinmetall AG. “The great importance of artillery is evident from Ukraine's battle to defend its country. European armed forces also need to replenish their stocks of artillery ammunition. We are ready for this and are already working on it”.

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. Additionally, it plans to produce up to 1,5 million propellant modules annually and 3.000 tonnes of RDX explosives starting in 2026. Further tenders are expected in the future.

In his recent proposal for a European Defense Investment Programme (EDIP, “European Defense Investment Programme”), the EU plans to promote the expansion of production capabilities for other defense products.