German Company Rheinmetall builds new plant to produce 200,000 shells a year.

On February 12, 2024, Rheinmetall, a technology company based in Germany, announced the construction of a new factory at its Unterlüß site, located in the Lüneburg Heath in Lower Saxony. This initiative aims to increase the country's self-sufficiency in ammunition production.
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The 155mm shells produced by Rheinmetall (Picture source: Rheinmetall)

The future "Werk Niedersachsen" factory will specialize in the production of artillery ammunition, explosives, and components for rocket artillery. It plans to produce approximately 200,000 artillery shells per year, as well as up to 1,900 tons of RDX explosive and, potentially, other components for manufacturing ammunition charges. The production of rocket motors and possibly military warheads could also be considered, particularly for the German rocket artillery project.

Armin Papperger, Chairman of Rheinmetall, emphasized the importance of securing Germany's strategic sovereignty in the domain of large-caliber ammunition. He also stated that with this new factory, he aims to establish a European center for artillery ammunition production. The new Rheinmetall factory will enable the Bundeswehr to meet its own needs through domestic production and, especially in times of crisis, ensure unrestricted transfers to partner nations. This will eliminate the previous dependency on export permits issued by other countries, granting Germany sovereignty in this critical national security domain.

This new factory will operate largely autonomously, with all necessary steps for producing artillery shells carried out on-site. By constructing this plant, Rheinmetall is pursuing a modular and scalable concept to ensure a secure supply of ammunition, with potential for further growth.

The top priority for the new factory is to start production as soon as possible. After a construction period of about twelve months - from the contract date - the initial annual capacity will be 50,000 shells. Germany's initial share of value added will start at 50%, gradually increasing in the second year of production to 80%, and reaching 100% in the third year. By then, Germany will have a completely self-sufficient artillery ammunition supply, with value added generated entirely within the country.

In terms of volume, the annual capacity will reach 100,000 shells in the second year of production, later rising to 200,000 shells per year. Artillery is a crucial capability in land warfare. The conflict in Ukraine has shown the immense need for ammunition. The Bundeswehr's depots are empty; replenishing its stocks is estimated to cost about €40 billion. The enormous consumption of ammunition in Ukraine is exacerbating current shortages. The production capacity available in the Western world is not structured to meet demand on this scale. Like other countries, Germany therefore plans to procure large quantities of ammunition over an extended period.

Defense News February 2024