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Rheinmetall Breaks Ground on New $321M Ammunition Factory in Northern Germany

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Duesseldorf-based arms manufacturing company Rheinmetall broke ground on a new ammunition factory in Lower Saxony, northern Germany, on Monday in a bid to boost the country’s self-reliance in producing ammunition.

The dignitaries who attended the groundbreaking ceremony included German Chancellor Olaf Scholz, Danish Prime Minister Mette Frederiksen and German Defence Minister Boris Pistorius.

The company said the plant, called Werk Niedersachsen, is designed to produce 200,000 artillery shells and 1,900 tons of RDX explosives annually. Production of rocket engines and warheads is also feasible at the plant, a capability that will support Rheinmetall’s plan to develop a German rocket artillery system with U.S. defense contractor Lockheed Martin as its partner.

Rheinmetall said it is investing $321 million in the new factory with no government funding.

Werk Niedersachsen is projected to create 500 new local jobs. Operations will be largely autonomous, with all artillery manufacturing processes performed onsite. Construction is expected to be completed after 12 months, with production to start at the earliest time possible.

Rheinmetall is also expanding its 2024 ammo production capacity in Spain, South Africa and Australia to bring its total annual capacity to approximately 700,000 artillery rounds.

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