Rheinmetall Opens Europe’s Largest Ammunition Factory, Plans Two Bulgarian Plants

Rheinmetall AG has officially opened what will be Europe's largest artillery ammunition factory in Unterlüß, Germany, with key figures including German Finance Minister Lars Klingbeil, Defense Minister Boris Pistorius, and NATO Secretary General Mark Rutte attending the ceremony. The plant will produce 155-millimeter shells, a NATO standard caliber, with plans to ramp up production from 25,000 rounds this year to 350,000 by 2027, contributing to Rheinmetall's goal of producing 1.5 million shells across all facilities by then. In parallel, Rheinmetall is investing over €1 billion to build two new production plants in Bulgaria for gunpowder and 155 mm artillery shells, with an additional drone manufacturing facility under discussion, aiming to produce around 100,000 shells annually at the Bulgarian site. These expansions respond to increased demand driven by the ongoing war in Ukraine and efforts to strengthen European and NATO defense capabilities, while also aiming to enhance regional industrial capacity and autonomy. Despite plans to double artillery shell production in Ukraine through a new plant, Rheinmetall faces bureaucratic and financial challenges there, complicating the scale-up efforts. Overall, Rheinmetall is positioning itself as a critical supplier for the Western alliance's ammunition needs amid heightened geopolitical tensions.