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Rheinmetall: New ammunition factory & framework contract for artillery ammunition in planning

Rheinmetall different types of artillery ammunition thumbnail
Various 155mm shells from RheinmetallImage: Rheinmetall
By GAU
Published: 26/01/2024
5 Min Read
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Zur deutschen Fassung

  • Deutsch (German)

Apparently, Ukraine can look forward to an even better supply of 155 mm artillery ammunition and corresponding deliveries by the German government in the long term.

Germany’s Minister of Defence, Boris Pistorius, announced yesterday during an approximately 45-minutes long interview with BILD that a second framework contract for the production and supply of artillery ammunition is currently being worked on with Rheinmetall.

According to Pistorius, this is because the German arms manufacturer is building a new ammunition factory for artillery ammunition at very short notice.

He did not provide any further details such as a timeline, a possible scale of production or where the production would take place. However, it is likely to be a possible factory in Lithuania.

According to The Baltic Times, Aušrinė Armonaitė, the Lithuanian Minister for Economy and Innovation, also reported yesterday that they are in “very detailed talks” with Rheinmetall about the construction of a factory inside of Lithuania.

Although she did not reveal any details either, it would probably be a coincidence of cosmic proportions if they were not talking about the same factory.

In fact, Rheinmetall CEO Papperger provided further information days after this article was published. He is quoted in the BILD.

We will now build a new ammunition factory in Germany in record time to create strategic security of supply.

Rheinmetall CEO Papperger via BILD

Unfortunately, he was unable or unwilling to provide any further information. What will happen to the planned factory in Lithuania is therefore still unknown. It is of course possible that a second factory will also be built in Lithuania.

Lithuania is traditionally very close to the German defence industry and has been heavily involved for a long time. Not just because there has been a maintenance hub for NATO equipment since 2022, which is jointly managed by KMW and Rheinmetall under the name Lithuania Defense Services (LDS).

This hub has been used since mid-2023 for the repair and maintenance of damaged Ukrainian Strv 122 and Leopard 2A6 MBTs and is therefore currently irreplaceable for Ukraine.

Pistorius in front of a Leopard 2 MBT at LDS
Minister of Defence Pistorius in front of a repaired Ukrainian Leopard 2 MBT at LDS in Lithuania | Image: BTB-concept

The German decision to station a full brigade in Lithuania — in that kind for the first time in the history of the Bundeswehr — could have also played a role in the choice of location.

The construction of a new factory in Lithuania would not be the first effort to increase the company’s own production capacity for 155 mm artillery ammunition. Firstly, Rheinmetall acquired the Spanish ammunition manufacturer Expal Systems S.A.U. for around 1.2 billion euros in August 2023, while the takeover was already announced in November 2022.

Rheinmetall has also increased its production capacity by expanding existing production lines and plans to produce up to 700,000 155 mm artillery shells by the end of the year. In 2022, the capacity was still around 80,000 155 mm artillery shells.

Rheinmetall also wanted to build a new powder factory on a former military airfield in Grossenhain. A project that allegedly failed for political reasons. Instead, the company now wants to expand the existing site in the Bavarian municipality of Aschau am Inn. Nevertheless, this will also lead to an increase in production capacity.

Whether a second new factory will now be built in Lithuania seems to be uncertain, at least on the Lithuanian side, but it is already very good news that Rheinmetall has confirmed that they will build a new factory in Germany.


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Changelog

  • 28th of January 2024 — Statement by Rheinmetall CEO Papperger about the factory in Germany added
TAGGED:AmmunitionGermanyLithuaniaRheinmetallUkraine

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