“We can produce 240,000 rounds of tank ammunition (120 mm) per year, which is more than the entire world needs,” CEO of German defence industry giant Rheinmetall Armin Papperger told Reuters in an interview.
The Rheinmetall capacity of production 155 mm artillery ammunition can be ramped up to 450,000 to 500,000 per year, said Papperger.
This increase in production would make Rheinmetall the biggest producer of tank and artillery ammunition in the world.
CEO of Rheinmetall said that in mid of a year, the company will launch a new production line for medium caliber ammunition used by the Gepard self-propelled anti-aircraft guns (SPAAG).
Rheinmetall also eyes the operation of a new powder plant, possibly in the eastern German state of Saxony, but the investment of 700 to 800 million euros would have to be footed by the government in Berlin, said Papperger.
“The state has to invest, and we contribute our technological know-how. In return, the state gets a share of the plant and the profits it makes,” CEO of Rheinmetall suggested. “This is an investment that is not feasible for the industry on its own. It is an investment into national security, and therefore we need the federal state,” he added.
The plant is needed as shortages in the production of special powders could turn out to be a bottleneck, hampering efforts to boost the output of tank and artillery shells.
Source: Reuters.