German defence industry to boost ammunition production

By Defence Industry Europe

German armament and chemical firms are set to receive a significant portion of the new EU funding dedicated to boosting European ammunition and missile production capabilities. The EU Commission disclosed on Friday that over 130 million euros out of a total 500 million euros would support German projects.


Key beneficiaries include Rheinmetall, Nitrochemie, and Alzchem, focusing on enhancing production capacities for projectiles and their essential propellants. Additionally, MBDA Deutschland is earmarked to receive funding for a guided missile project.

This financial injection forms part of a receivables program initiated in the wake of Russia’s war of aggression against Ukraine. Its primary aim is to stimulate the expansion of ammunition and missile production within the European Union, ensuring sustained support for Ukraine.



The funding is expected to significantly uplift the production of explosives by over 4,300 tons annually. It’s projected that the overall yearly production capacity for projectiles will rise to up to 1.7 million by the end of this year and surpass two million by early 2026. Notably, the production of 155-millimeter artillery shells, critical for Ukraine’s defence efforts, has already hit the milestone of one million per year as of this January, as stated by the Commission.



Norway, alongside EU member states, participates in the funding initiative named ASAP (Act in Support of Ammunition Production), with the EU covering up to 45 percent of project costs.

Moreover, the EU is advancing the EDIRPA project to encourage joint procurement within the EU defence industry. A tender published on Friday seeks to reimburse Member States from the EU budget for consortium-based purchases involving at least three Member States, with a total of 310 million euros allocated for this purpose.



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