The German defense giant Rheinmetall has reached an agreement to acquire the Hagedorn-NC factory, renowned for its production of nitrocellulose — a key component in ammunition manufacturing.

The company shared the news in its press release.

Previously focused on serving the civilian market, the factory’s production capabilities will now be adapted to meet military requirements as part of the acquisition.

The civilian customers of Hagedorn-NC will continue to receive products without interruption.

This acquisition will allow Rheinmetall to strengthen its production capacity for substances used in various types of ammunition, including 155mm artillery shells.

According to German legislation, the deal must be approved by the relevant antitrust authorities.

“This step further strengthens Rheinmetall’s position as a leading supplier of large calibre ammunition within NATO, ensuring a long-term, independent supply of essential components for production. As a system house, Rheinmetall offers the ‘full shot’ from a single source: the projectile, the fuse, the explosive charge and the propellant,” the company said in a statement.

On February 25, it was reported that Rheinmetall was repurposing two of its automotive plants in Germany to produce ammunition and other defense products.

According to the plans, both plants will be transferred to the ammunition production division.

The company said that those facilities would not perform operations with explosives but would produce mechanical components.

It is specified that the new facilities would become so-called “hybrid plants,” retaining the ability to produce civilian products.

Rheinmetall’s ammunition plant in Ukraine is scheduled to start operations in 2026.