Rheinmetall receives over €130 million in EU funding to expand ammunition production

Rheinmetall receives over €130 million in funding from the European Union to increase the production of ammunition.

More than a quarter of the total sum of €500 million awarded by the EU under the Act of Support in Ammunition Production (ASAP) in order to expand the production of 155mm artillery ammunition and powder will be channeled into a total of six projects by Rheinmetall AG's European subsidiaries.

The program will support projects in Germany, Hungary, Romania and Spain.

ASAP is the first EU funding program for the expansion of ammunition production.

The corresponding grant agreements are expected to be signed in May 2024.

Armin Papperger, CEO of Rheinmetall AG: "We are grateful that the European Union has placed its trust in us as one of the most important European suppliers of 155mm ammunition, to significantly consider us in its funding program. The great importance of artillery is evident from the Ukraine's battle to defend its country. The European armed forces also need to replenish their stocks of artillery ammunition. We are ready for this and we are already working on it".

The company made the following statement regarding its production capacities:

“Rheinmetall has been increasing its production capacities since 2022 and the company aims at producing up to 1.1 million artillery shells per year by 2027. In addition, up to 1.5 million propellant modules and 3,000 tons of RDX explosives are to be produced annually starting in 2026.

Further tenders are expected in the future. In its recently published proposal for a European Defense Investment Program (EDIP), the EU plans to promote the expansion of production capacities for other defense products.”

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