Rheinmetall has inaugurated a new ammunition production plant in Unterlüß, Lower Saxony, described as Europe’s largest facility of its kind. The company invested nearly €500 million in the site, which was completed in 15 months.
The opening ceremony drew senior officials from Germany and abroad, including Vice-Chancellor and Finance Minister Lars Klingbeil, Defence Minister Boris Pistorius, NATO Secretary General Mark Rutte, and General Carsten Breuer, Chief of Defence of the German Armed Forces. Bulgarian President Rumen Radev and Lower Saxony’s Minister-President Olaf Lies also attended, along with delegations from the United States, Latvia, and Lithuania.
The factory, covering around 30,000 square meters, is expected to produce up to 350,000 artillery shells annually once full capacity is reached in 2027. Production will begin with 25,000 rounds by the end of 2025, followed by 140,000 rounds in 2026. Rheinmetall also plans to add rocket engine production in 2026. According to the company, up to 500 jobs will be created, 350 of them at the Lower Saxony site and 150 in the rocket engine line. Additional employment is expected across supply chains and support services.
The facility is part of Rheinmetall’s broader strategy to expand ammunition output across its network, which includes sites in Spain and South Africa. Following its €1.2 billion acquisition of Spanish producer Expal Systems in 2023, Rheinmetall aims to reach an annual capacity of 1.5 million artillery shells by 2027.
Just ahead of the ceremony, NATO member Romania signed a Letter of Intent with Rheinmetall, outlining plans for a new €550 million ammunition plant in Romania in partnership with local industry.
Political and Industry StatementsFederal Finance Minister Lars Klingbeil said:
“We are herewith investing in our security. This plant indicates that we are taking action.”
Defence Minister Boris Pistorius addressed Rheinmetall and the wider industry:
“We want you to be successful, because your success means security for our country. You, the industry, deliver what is important: speed and substance. NATO must become more European so that it can remain transatlantic.”
NATO Secretary General Mark Rutte remarked:
“Strong and successful is exactly what Rheinmetall is. Their military build-up points in a clear direction: they are preparing for long-term confrontation and competition – with us.”
Rheinmetall CEO Armin Papperger highlighted the pace of construction:
“From the groundbreaking to production in just 15 months – that’s a real turning point at Rheinmetall speed. Our new national production facility is setting standards and will, above all, ensure the supply of the German Armed Forces. We can also erect comparable plants in other NATO countries within a very short time, thus creating a pan-European defence ecosystem. For example, we have already launched specific projects in Lithuania and the United Kingdom, with more to follow.”
Background on Unterlüß
Rheinmetall has operated in Unterlüß since 1899. The site is currently its largest globally, employing 3,200 people. It hosts Rheinmetall Landsystems GmbH, Rheinmetall Weapon and Munition GmbH, and Rheinmetall IT Solutions GmbH. In addition to ammunition production, the site develops and manufactures weapon systems and serves as a competence centre for tracked vehicle development and testing. The company owns about 60 square kilometres in the region, used both for defence testing and forestry.