Rheinmetall opens Europe’s largest ammunition plant in Lower Saxony after €500m investment

By Defence Industry Europe

Rheinmetall has officially opened Europe’s largest ammunition factory in Unterlüß, Lower Saxony, after completing construction in just 15 months. The technology group invested almost €500 million in the site, which will supply the urgent needs of the armed forces in Europe.
Photo: Defence Industry Europe.

Rheinmetall has officially opened Europe’s largest ammunition factory in Unterlüß, Lower Saxony, after completing construction in just 15 months. The technology group invested almost €500 million in the site, which will supply the urgent needs of the armed forces in Europe.

 

The opening ceremony was attended by numerous dignitaries from Germany and abroad, underscoring the importance of the project. Among the guests were Vice-Chancellor and Federal Finance Minister Lars Klingbeil, Federal Defence Minister Boris Pistorius, NATO Secretary General Mark Rutte, General Carsten Breuer, Chief of Defence of the German Armed Forces, and Bulgarian President Rumen Radev.

Production at the new Werk Niedersachsen facility is set to reach up to 350,000 artillery shells annually by 2027. The first 25,000 rounds will be completed by the end of this year, with 140,000 scheduled for 2026, and the plant also plans to begin rocket engine production in 2026.

 

 

Rheinmetall CEO Armin Papperger said: “After having accelerated the production to the maximum until 2027 and then being at full capacity, the Werk Niedersachsen will be the largest ammunition plant in Europe, if not the world”. The plant covers an area of around 30,000 square metres and will create up to 500 jobs, with additional employment expected through suppliers and service providers.

The company highlighted that ammunition supply is vital for restoring the defence capabilities of Germany and its European allies. In 2023, Rheinmetall acquired Spanish manufacturer Expal Systems for around €1.2 billion and aims to produce 1.5 million shells annually across its network by 2027, including sites in Spain and South Africa.

The urgency of supply needs was reflected by a major order from NATO member Romania, announced during the ceremony. Romania’s Minister of Economy Radu-Dinel Miruță and Rheinmetall CEO Armin Papperger signed a Letter of Intent, with investment of about €550 million planned for a new Romanian facility.

 

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Finance Minister Lars Klingbeil told guests: “We are herewith investing in our security”, adding: “This plant indicates that we are taking action”. Defence Minister Boris Pistorius said: “We want you to be successful, because your success means security for our country”, and praised the industry for delivering “speed and substance”. He also emphasised: “NATO must become more European so that it can remain transatlantic”.

NATO Secretary General Mark Rutte stated: “Strong and successful is exactly what Rheinmetall is”. Referring to the military build-up in Russia and China, he warned: “Their military build-up points in a clear direction: they are preparing for long-term confrontation and competition – with us”.

Rheinmetall CEO Papperger underlined the speed of the project: “From the groundbreaking to production in just 15 months – that’s a real turning point at Rheinmetall speed”. He said the facility would guarantee independent supply for Germany and partner nations and stressed: “This means that we can also erect comparable plants in other NATO-countries within a very short time, thus creating a pan-European defence ecosystem”.

 

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The Unterlüß site, operated by Rheinmetall since 1899, is now the group’s largest worldwide with 3,200 employees. It hosts Rheinmetall Landsystems GmbH, Rheinmetall Weapon and Munition GmbH and Rheinmetall IT Solutions GmbH, and remains a centre for weapon system development, tracked vehicle support and testing. Covering 60 square kilometres, the site also maintains large forestry areas alongside its production and firing ranges.

 

 

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