The Aschau site, which also houses the headquarters of Rheinmetall Nitrochemie, will significantly expand production of propellant components for barrel artillery and other large-calibre systems. The facility currently covers 90 hectares and is expected to grow to around 110 hectares.
Rheinmetall said several hundred million euros will be invested in the expansion. Employment at Aschau has already risen by about 80 per cent since 2022 to more than 800 people, with several hundred additional jobs planned and a future workforce of around 1,400.
Production in the new facilities is scheduled to start gradually from 2027. The existing operation currently runs around the clock in shifts, producing about 1,700 tonnes of powder and 300,000 propellant charge modules a year.
Over the next 24 months, Rheinmetall plans to more than double output of powder and propellant charge modules at Aschau. The expansion is expected to add 2,500 tonnes of powder, more than five million combustible components and more than one million modular propellant charge modules.
The company said the full value chain for modular propellant charges will be managed from a single source at the site. Maximum production capacity is expected to be reached in 2028.
Propellant charge, or powder, is a core component in artillery and other barrel-based weapon systems. Once ignited, it burns in a controlled manner without leaving residue, propelling the projectile out of the barrel towards the target.
The foundation-laying ceremony was attended by Bavarian Minister-President Dr Markus Söder, Parliamentary State Secretary at the Federal Ministry of Defence Dr Nils Schmid and Bavarian Economy Minister Dr Hubert Aiwanger. Their presence underlined the political weight attached to ammunition production capacity and defence industrial resilience in Germany.
“Security and defence capability are the prerequisites for freedom: the laying of the foundation stone for the plant expansion of Rheinmetall’s subsidiary Nitrochemie in Aschau am Inn is a good day for security,” said Minister-President Dr Markus Söder.
“Rheinmetall is investing €500 million in Europe’s largest and most modern powder factory. This makes a decisive contribution to resilience and autonomy in the defence sector and creates 500 new, secure jobs in the region. This benefits Germany, the EU and NATO. After all, only those who can defend themselves will not be attacked. In Bavaria, security and defence are a priority – a third of Germany’s defence technology companies are based in the Free State. With our own Defence Industry Act, we are ensuring that defence companies are given priority. Just as with the Bundeswehr Act, we are pioneers throughout Germany!”
Parliamentary State Secretary Dr Nils Schmid said Germany’s ammunition capacity was now a matter of security policy and allied supply resilience. “Expanding production capacity in Germany, particularly for ammunition, is a security necessity and is also of the utmost importance to our partners. I am therefore grateful that the security and defence industry is making efforts at all levels to make supply chains more resilient. The results are truly impressive. The new facility here in Aschau is a response to the urgent demand for ammunition in Germany and across Europe. The additional production capacity will, overall, enhance Germany’s and Europe’s strategic autonomy. It demonstrates that democratic states are prepared to take responsibility and stand up for one another. On behalf of the Federal Government, we wish you a swift construction process and every success with this important contribution to the defence of Germany and Europe.”
Armin Papperger, CEO of Rheinmetall AG, said the company’s position across the ammunition supply chain was intended to prevent shortages in critical components. “Since its foundation, Rheinmetall has been a competence centre for weapons and ammunition systems. We are one of the few manufacturers in the ammunition sector to cover the entire value chain, from propellant charges and primers to fuzes and shell bodies, as well as explosive and active charges. None of these components shall be a bottleneck. This is particularly important when it comes to propellant, as there are only a few manufacturers worldwide. Self-sufficiency is therefore crucial. The Aschau site will thus make a decisive contribution to the national sovereignty and credible defence capability of Germany and Europe”.
Project Firepower is Rheinmetall’s response to urgent ammunition demand across the Western defence market. The company is investing in new plants, including Unterlüss, and expanding existing sites such as Nitrochemie.
Rheinmetall aims to raise annual group propellant powder capacity to 20,000 tonnes by 2030. More than one-fifth of that target, or 4,200 tonnes, is expected to come from Aschau.
The company said it is investing around €650 million in propellant powder production and energy-intensive precursor materials. Of that total, €350 million is being invested in Aschau, with facilities in Wimmis in Switzerland and Murcia and Burgos in Spain also contributing to the capacity increase.
Rheinmetall Nitrochemie is a German-Swiss group based in Wimmis in the Swiss canton of Bern and Aschau am Inn in Upper Bavaria. Both sites have long histories in gunpowder production, with Aschau operating under the WNC Nitrochemie name from 1953 before Rheinmetall acquired it in 1994.
The current Nitrochemie Group was formed in 1998, when the “Powder & Charges” division of SM Schweizerische Munitionsunternehmung AG merged with WNC Nitrochemie. Since then, the Aschau site has operated as Nitrochemie Aschau GmbH, while the Swiss site has operated as Nitrochemie Wimmis AG.
