EU Allocates €130M to Boost Ammunition Production at Rheinmetall Arms Manufacturer

The European Union has earmarked over €130 million to bolster ammunition production at Germany's arms manufacturer Rheinmetall, according to a statement from the company's press service.

The funds will be used to expand the production of 155mm artillery ammunition and powder.

“The program will support projects in Germany, Hungary, Romania and Spain,” the statement says.

CEO of Rheinmetall AG, Armin Papperger, emphasized the significance of artillery, particularly in light of Ukraine's ongoing defense efforts.

"The European armed forces also need to replenish their stocks of artillery ammunition. We are ready for this and already working on it," Papperger said.

The company has been steadily ramping up its production capabilities since 2022, with the goal of reaching an annual output of up to 1.1 million artillery shells by 2027. Additionally, Rheinmetall expressed keen interest in investing in at least four plants in Ukraine.

In a related development, the Franco-German arms group KNDS, specializing in tank manufacturing, announced plans to produce military equipment and munitions in Ukraine.

German Defence Minister Boris Pistorius and his French counterpart Sebastien Lecornu disclosed this initiative during a joint press conference in Berlin las week.

"We are going to work together to produce weapons and munitions in Ukraine," stated Minister Pistorius.

KNDS intends to establish a subsidiary in Ukraine initially focused on training locals and swiftly producing spare parts, particularly for systems already deployed.

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This move comes amidst Ukraine's urgent need to address ammunition and weapon shortages amid ongoing war with Russia.

The agreement aligns with a recent proposal by German Chancellor Olaf Scholz and French President Emmanuel Macron to foster military production in Ukraine.

Lecornu highlighted the strategic advantage of such a facility, citing closer proximity to the front line, reduced logistics, and enhanced reliability of supply.

KNDS, a collaboration between France's Nexter and Germany's KMW, specializes in manufacturing battle tanks, armored vehicles, and artillery systems.