Rheinmetall Hungary Munitions, a joint venture of the German automotive and arms manufacturer Rheinmetall and the Hungarian holding company N7, will begin manufacturing ammunition in 2024 at its new plant in Varpalota, Hungary, which is now in its second phase of construction.
According to Rheinmetall, the plant’s completed first phase will produce 30 mm medium-caliber ammunition for the Lynx infantry fighting vehicles that the company will build at its new Hungarian tank factory in Zalaegerszeg.
The Varpalota ammunition plant’s second phase of construction, which began in January, will increase the plant’s size by 20 hectares to about 120 hectares.
The facility, with a workforce expected to grow up to 200 employees, will eventually manufacture a range of new ammunitions including the PzH 2000 self-propelled howitzer’s 155 mm artillery shells and the Leopard 2 main battle tank 120 mm ammunition.
Part of the plant’s output will be for the Hungarian armed forces, and the rest will be for export. The Varpalota site will also host Rheinmetall’s development and acceptance testing.
Another Reinmetall and N7 joint venture will establish a separate factory for explosives at the Varpalota site.