“Brussels Boost: Rheinmetall Secures €130 Million EU Investment to Supercharge Artillery Production”
Rheinmetall secures over €130 million in funding from the European Union to enhance ammunition manufacturing. Thus, more than a quarter of the total allocation of €500 million granted by the EU under the Ammunition Production Support Act (ASAP) to boost the output of 155mm artillery shells and propellant will be directed towards six initiatives by Rheinmetall AG’s European subsidiaries. The initiative will back projects in Germany, Hungary, Romania, and Spain.
ASAP represents the inaugural EU funding initiative aimed at expanding ammunition production. The associated grant agreements are anticipated to be formalized in May 2024.
“We are appreciative that the European Union has entrusted us as one of the
most pivotal European producers of 155mm ammunition, to significantly
recognize us in its funding initiative,” remarks Armin Papperger, CEO of Rheinmetall
AG. “The critical role of artillery is demonstrated by Ukraine’s struggle to
protect its nation. The European military forces also necessitate the replenishment of their artillery ammunition supplies. We are prepared for this and are already making progress.” rheinmetall.com
Rheinmetall has been augmenting its production capabilities since 2022, aiming to manufacture up to 1.1 million artillery projectiles annually by 2027. Furthermore, the company plans to produce up to 1.5 million propellant modules and 3,000 tonnes of RDX explosives each year commencing in 2026.
Additional tenders are anticipated in the future. In its recent proposal for a European Defence Investment Programme (EDIP), the EU aims to advance the enhancement of production capabilities for various defense products.
