The German arms concern Rheinmetall received over €130 million in funding from the European Union to increase ammunition production.
Rheinmetall received funds for the production of ammunition
Rheinmetall says funds have been allocated under the Ammunition Support Act (ASAP) to expand the production of 155 mm artillery ammunition and gunpowder.
ASAP is the first EU funding program to expand ammunition production. The relevant grant agreements are expected to be signed in May 2024.
More than a quarter of the total amount of €500 million will be directed to six projects of Rheinmetall AG subsidiaries in Germany, Hungary, Romania and Spain.
We are grateful that the European Union trusted us as one of the most important European suppliers of 155 mm ammunition and included us in their funding program. The great importance of artillery can be seen from Ukraine's struggle to defend its country. European armed forces also need to replenish their stocks of artillery ammunition. We are ready for this and are already working on it, says Armin Papperger, CEO of Rheinmetall.
Rheinmetall has been ramping up its production capacity since 2022. By 2027, the company aims to produce up to 1.1 million artillery shells per year.
In addition, starting in 2026, it is planned to produce up to 1.5 million fuel modules and 3,000 tons of RDX explosives annually.
Rheinmetall plans to build a plant in Ukraine
In December 2023, Armin Papperger reported that Rheinmetall plans to start production of armoured vehicles in Ukraine in 2024.
It is about the production of Fuchs armored personnel carriers and Lynx infantry fighting vehicles.
The plan is to release the first Fuchs within 6-7 months and the first Lynx within 12-13 months.
According to the company's plans, the production of the Fuchs was planned for the end of summer and the Lynx for the summer of 2025.
