As the European Union (EU) attempts to fortify its defence capabilities, Rheinmetall secures a funding injection to bolster artillery production.
With more than €130m ($140m) earmarked for Rheinmetall under the EU Act of Support in Ammunition Production (ASAP), the move reflects a strategic alignment between the private and public sectors in fortifying Europe’s defence infrastructure.
The EU Commission has also chosen MBDA to receive investment under ASAP starting May 2024, facilitating the expansion of Enforcer missile production across Europe.
Armin Papperger, CEO of Rheinmetall AG, underscores the role of artillery amidst evolving security challenges, emphasising the imperative for European armed forces to reinforce their ammunition stocks.
“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,” Papperger stated.
Rheinmetall’s expansion plans extend beyond its home base in Germany, encompassing projects across four European countries: Hungary, Romania, and Spain.
Rheinmetall’s trajectory towards increased production capacities dates back to 2022, with targets set to produce up to 1.1m artillery shells annually by 2027. Moreover, the company aims to scale up the production of propellant modules and RDX explosives, underlining its role in meeting Europe’s burgeoning defence needs.
The EU’s commitment to fostering defence is poised to unlock further opportunities for Rheinmetall and other industry stakeholders. With the European Defence Investment Programme (EDIP) on the horizon, the stage is set for collaborative ventures to boost Europe’s defence resilience.
