US opens new ammunition production factory for Ukraine
Category
World
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US opens new ammunition production factory for Ukraine

Ammo production in US
Source:  The New York Times

The US Department of Defence opened the first munitions factory after the beginning of the large-scale invasion of the Russian occupation army in Ukraine.

What is known about the new US defence plant that will manufacture ammunition for Ukraine

At the plant located near Dallas, Texas, workers from Turkey are already unpacking wooden boxes bearing the emblem of the defence company Repkon, which is based in Istanbul.

Currently, the assembly of robotic equipment and machines for the further production of artillery ammunition is underway.

It is emphasised that the enterprise will soon produce about 30,000 steel rounds for 155 mm howitzers every month.

NATO Secretary General Jens Stoltenberg noted that in 2023, the Ukrainian military produced 4,000 to 7,000 such munitions per day before the US Congress stopped approving military aid to Ukraine.

Because of this, the Ukrainian military still experiences an acute shortage of ammunition at the front.

The US Ministry of Defense, seeking to provide the Ukrainian military with sufficient ammunition, planned to increase its production to 100,000 per month by the end of 2025.

The factories in Scranton and Wilkes-Barre, Pennsylvania, together produce about 36,000 shells per month.

General Dynamics' new facility in Mesquite, Texas, will produce 30,000 units when fully operational.

Continued growth in the production of artillery ammunition is important for the long-term needs of the United States and Ukraine. But even at best, I'd say those late 2025 performance targets will be met late in this war, and it's likely that Russian artillery power will still be higher than that of the US and Europe combined at that point. Let's say that in a year and a half, both the United States and Europe will produce or buy more than a million shells each. This is still probably less than Russia is going to produce this year, warned Michael Kofman, an expert on the Russian army and a senior fellow at the Carnegie Endowment.

The plant will consist of three production lines in different buildings, one of which will house a Frito-Lay distribution center.

How will the new munitions production enterprises in the USA work

Shells can take several days to make at today's military factories in Pennsylvania, which use a combination of new and almost age-old technology to heat and press steel blanks into conical shells.

But the new plant in Mesquite is much faster.

The shorter revolution is achieved through so-called flow forming—a machine inside a body roughly the size of a city bus spins a 130-pound steel cup at high speed while compressing it until it's a long, shiny cylinder.

After that, robots do most of the remaining work.

Laser scanners have replaced human eyes and hand tools for inspecting projectiles internally and externally, quickly verifying that projectiles meet desired specifications.

Once production is complete, the empty shells made in Mesquite will be sent to the Army's only facility to fill them with explosives, a World War II-era plant in Burlington, Iowa.

However, many of the shells will be shipped to another new General Dynamics plant under construction in Camden, Arkansas, next year.

According to two officials, the United States has given Kyiv secret plans for the production of more than 1,000 units of American weapons and translated the same number of technical manuals from English into Ukrainian.

Category
Economics
Publication date

Trump's new tariffs. Global markets lose $9.5 trillion in three days

Trump
Source:  Bloomberg

Stocks in financial markets that opened on April 7 continue to fall due to US President Donald Trump's "tariff war".

Points of attention

  • US President Donald Trump's 'tariff war' has led to a massive $9.5 trillion loss in global markets over three days, triggering a sharp decline in financial markets worldwide.
  • Defense stocks, Tesla Inc., and cryptocurrencies have suffered significant losses as a result of Trump's tariff policies, with defense stocks being hit the hardest despite being strong performers earlier.
  • The imposition of large-scale tariffs by Trump has also impacted oil prices, pushing benchmark oil brands towards critical levels and affecting the Russian state budget as prices drop to unprofitable levels.

Global markets lost $9.5 trillion in three days of Trump tariffs

Stocks fell, bringing the three-day loss in global capital value to about $9.5 trillion. S&P 500 stock futures lost 3%, and the VIX index jumped above 50. The European Stoxx 600 fell 5%.

The European Stoxx 600 index fell to its lowest level since December 2023, while Germany's DAX briefly sank 10% before recovering. Defense stocks, which have been the best performers this year, were hit the hardest as investors hoarded cash by selling shares.

Tesla Inc. shares fell 10%. Apple Inc., Amazon.com Inc. and Citigroup Inc. shares fell about 5%.

Hong Kong's Hang Seng Index fell 10% in morning trading, while the Shanghai and Shenzhen markets fell 6% and 8% respectively.

In Taiwan, which produces the vast majority of the world's most advanced semiconductors, markets fell 9.8% after opening for the first time since Trump's announcement of tariffs — the biggest one-day drop in history.

Asian leaders have made a series of statements to the United States to try to avert a crisis for their economies, and US partners such as Japan, South Korea and Taiwan have promised to negotiate.

South Korea's government said on Sunday it would provide $2 billion in emergency aid to the domestic auto industry to cushion the blow from Trump's 25% tariffs on foreign-made cars that took effect last week.

Cryptocurrencies have lost almost all of their gains since Donald Trump won the November election, as the fallout from the US president's tariff policies triggered massive asset sales.

Bitcoin lost as much as 5.3% on Monday, falling to $74,600 for the first time since November 7.

This drop is due to Trump's imposition of large-scale tariffs, which have already led to the loss of trillions of dollars in global markets.

Prices for benchmark oil brands are approaching critical levels for Russia as US President Donald Trump imposed new import duties and China imposed tariffs on American goods in response.

Oil prices have reached their lowest level since the middle of the coronavirus pandemic in 2021. The fall in “black gold” is caused by a flurry of new tariffs by US President Donald Trump and increased production in the OPEC+ group.

Reuters reports that Brent crude futures fell $3.48, or 5%, to $66.66 a barrel, while West Texas Intermediate crude futures fell $3.55, or 5.3%, to $63.40. Both are on track for their biggest weekly percentage losses in six months.

The fall in world oil prices has pushed the price of Russia's most popular oil, Urals, down to $50 a barrel. This has put pressure on the Russian state budget as the Kremlin ramps up spending on the war in Ukraine. A price below $60 is unprofitable for the Russian budget.

The Paris stock exchange continued to fall. The CAC 40 recorded a 4.5% drop to 6,947.86 points (-6.19% at the opening). In Frankfurt, the Dax, which combines shares of the 40 largest German companies, fell 4.84% after falling more than 10% in the morning.

The London Stock Exchange lost 4.24%, the Milan Stock Exchange lost 5.35%, the Swiss Stock Exchange lost 5%. The Madrid Stock Exchange fell by 5.05%, and the Amsterdam Stock Exchange by 5.21%.

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