Rheinmetall’s ammunition plant in Hungary will open lines for the production of tank and artillery shells.

The company’s press service reported on this.

In January 2024, the second phase of construction of Rheinmetall’s new ammunition plant in Várpalota, Hungary, started. Now set to begin, the “Várpalota 2.0” expansion will increase the size of the plant from 20 hectares to 120 hectares approximately. The number of employees will grow up to a total of 200.

In addition, the product range will expand including new types of ammunition, principally 120mm ammunition and 155mm artillery shells. Production is slated to begin in early 2026.

However, the plant in Várpalota, which was founded only a year ago, is still under construction. The first phase of the project is expected to be completed in 2024. At this stage, the company will start producing 30-mm ammunition for the Lynx infantry fighting vehicles.

Strategic defense project

A part of the strategic expansion of capacity for the production of ammunition in Hungary is also an additional plant for the production of explosives (RDX), which is being built in parallel on the same site and also in a joint venture between Reinmetall and N7.

Overall, this project is a strategic investment by Hungary in cooperation with Rheinmetall in response to a likely ammunition shortage due to expected growth in demand in Europe and NATO.

In addition, it is expected that some products will meet needs of Hungary, while others will go to European customers and replace some imports from abroad.

According to Rheinmetall’s press service, in addition to the above-mentioned plant, the company also produces ammunition in Germany, Spain, Switzerland, Austria, Italy, South Africa, Australia, and the United States.

The concern will build a new ammunition plant to ensure uninterrupted supply of ammunition on time.

“The pace is fast: what would have taken ten years before is now achieved in a few months. We will now build a new ammunition plant in Germany in record time to create strategic security of supply,” he said.

Rheinmetall plays a leading role in supplying Ukraine with ammunition, producing 155 mm artillery shells and mortars.