Rheinmetall Announces New Ammunition Factory in Lower Saxony

On 12 February, German Chancellor Olaf Scholz and Defence Minister Boris Pistorius arrived in the town of Unterlüß, Lower Saxony. Here, alongside Danish Prime Minister Mette Frederiksen and Rheinmetall CEO Armin Papperger, they broke ground for a new artillery ammunition factory.

The new factory is to be named “Werk Niedersachsen” and estimates suggest that it will eventually produce 200,000 artillery shells yearly, alongside 1,900 tonnes of RDX explosive. This is alongside any other necessary explosive components and the possible production of rocket engines and warheads at the facility. It is expected that the facility will provide 500 jobs. Already Rheinmetall operates a plant in Unterlüß, with 2,500 workers. This facility mainly engages in the development, assembly, and servicing of tracked vehicles.

For the new facility, Rheinmetall has shouldered the full expenses at an estimated €300 million ($323 million), with no government support. The roadmap of the facility is an expected construction duration of 12 months. Werk Niedersachsen will be designed as an autonomous facility, with all the processes of shell production being carried out on-site. Furthermore, Rheinmetall will pursue a modular plan for the facility, allowing for the possibility of future growth. Eventually, Rheinmetall intends to provide Germany with a fully “autarkic supply of artillery ammunition” with this facility.

Construction of the facility was prompted by Europe’s rising concerns of maintaining their domestic ammuntion stocks. This is an issue that has been exacerbated by demand from Ukraine and an EU promise to deliver 1 million shells to the nation by March. Rheinmetall has touted the importance of the facility calling it a “strategic step to bolster Germany’s national security preparedness.”