Rheinmetall plans to receive a significant share of contracts from the EU for the production of shells for Ukraine.

The company announced the possibility of producing up to 600-700 thousand shells for Ukraine.

Armin Papperger, Rheinmetall CEO, stated this in an interview with Handelsblatt.

Rheinmetall is the largest Western manufacturer of ammunition, producing 450,000 shells per year.

“We can expand our production to 600,000 to 700,000 artillery shells per year,” said Papperger.

He added that the possible expansion of the production of artillery shells would take some time.

Papperger estimates its value at €200-250 million.

Recently, the Rheinmetall plant in Unterluss was inspected by the EU Commissioner for the Internal Market, Thierry Breton.

During this visit the Rheinmetall representatives emphasized their intention to support the EU’s plan for Ukraine to the best of their ability. Rheinmetall is currently building an additional line for the production of medium-caliber ammunition at its plant in Unterluss, Lower Saxony. This will meet increased demand for air defense munitions starting this summer.

On May 5, the Council of the European Union approved the financing of the purchase of ammunition for Ukraine for €1 billion.

The European Union will finance the provision to the Ukrainian Armed Forces of 155-mm artillery rounds and, if requested, missiles, which will be jointly procured by EU member states from the European defense industry.

As previously reported, Rheinmetall has booked an important order for infantry fighting vehicle ammunition worth €200 million. Shipment is due to take place in 2023-2025.