Main — War — The EU will finance the increase in production of Rheinmetall ammunition
WarThe EU will finance the increase in production of Rheinmetall ammunition
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The German defense giant Rheinmetall will receive funding from the European Union to increase the production of ammunition.
This was reported by the press service of the German concern.
Rheinmetall has secured funding exceeding €130 million from the European Union to ramp up ammunition production. This accounts for more than a quarter of the €500 million total allocated by the EU through the Act of Support in Ammunition Production (ASAP). The funding aims to bolster the production of 155mm artillery ammunition and powder. Specifically, Rheinmetall AG's European subsidiaries will oversee six projects benefiting from this funding. These projects will be distributed across Germany, Hungary, Romania, and Spain as part of the program's support initiatives.
ASAP represents the inaugural funding initiative by the European Union aimed at facilitating the expansion of ammunition production. It is anticipated that the corresponding grant agreements will be formalized in May 2024.
"We are grateful that the European Union has placed its trust in us as one of the most important European suppliers of 155mm ammunition, to significantly consider us in its funding programme", says Armin Papperger, CEO of Rheinmetall AG. "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".
Rheinmetall has been expanding its production capacities since 2022, with the objective of manufacturing up to 1.1 million artillery shells annually by 2027. Moreover, the company plans to commence the annual production of up to 1.5 million propellant modules and 3,000 tonnes of RDX explosives by 2026.
Anticipated forthcoming solicitations suggest the likelihood of additional tenders. In its recently unveiled proposal for a European Defence Investment Programme (EDIP), the European Union envisages fostering the augmentation of production capacities for various other defence commodities.
