Hungary seeks supply chain independence with new ordnance plant
The new plant will produce explosives for MBT and artillery ammunition. Hungary is currently taking delivery of 24 PzH2000 self-propelled howitzers from Rheinmetall. (Photo: Hungarian Defence Forces)
Under a 15 December contract, Rheinmetall will fit out and jointly build and operate a Hungarian facility to produce explosives for large-calibre ammunition.
The Hungarian government has commissioned a new plant to produce RDX (Research Department eXplosive) at a site in Várpalota.
South Africa's Rheinmetall Denel Munition will supply plant technology and the facility will be built and operated by a JV consisting of Rheinmetall and Hungary's N7 Holding, a state-owned enterprise.
The contract is valued in the low three-digit million-euro range.
Related Articles
Embraer aims to build up local MRO capability in Hungary
Rheinmetall expands into Spanish market with Expal acquisition
Rheinmetall Lynx aims for more customers
Planning has been completed, with site work due to start in 2023, allowing production by 2027. The explosives produced will be used for artillery, tank, and mortar ammunition, inter alia.
The Rheinmetall contract covers plant engineering, technology, and processes as well as associated documentation and training.
A company release described the project as a 'strategic investment by Hungary in cooperation with Rheinmetall in response to the shortage of explosives resulting from strong demand for ammunition in Europe and NATO'.
It will also promote Europe's independence from overseas imports in this sector and forms part of Hungary's Zrínyi 2026 initiative. Rheinmetall is already building 172 Lynx KF41 infantry fighting vehicles in Hungary under a 2020 contract.
When the plant is completed and taken over by the Hungarian government, Rheinmetall will be the primary customer for its products.
More from Land Warfare
-
![Refresh of Romanian army vehicles speeds up]()
Refresh of Romanian army vehicles speeds up
Romania received its first Cobra MkII 4×4 light tactical armoured vehicles, ordered Abrams main battle tanks (MBTs) and VAMTAC light vehicles, and is set to invest billions-of-dollars in infantry fighting vehicles.
-
![Italy begins hunt for Puma replacement]()
Italy begins hunt for Puma replacement
The Italian Army operates Pumas in 6×6 and 4×4 configurations but the platforms are ageing and numbers have fallen with obsolescence also being an issue. Any replacement is likely to have a focus on the involvement of local industry.
-
![Orders roll in for VAMTAC tactical vehicles as first is delivered to New Zealand]()
Orders roll in for VAMTAC tactical vehicles as first is delivered to New Zealand
The VAMTAC (Vehículo de Alta Movilidad Táctico or High Mobility Tactical Vehicle) 4×4 by Urovesa is in service with or has been ordered by eight countries, the most recent being Spain this month and Romania last month.
-
![Precision Strike Missile engine successfully tested from M270A2 launcher]()
Precision Strike Missile engine successfully tested from M270A2 launcher
Lockheed Martin’s Precision Strike Missile (PrSM) is a next-generation surface-to-surface missile with the solid rocket motor (SRM) provided by Northrop Grumman. The company is working to boost its SRM production capability.
-
![CV90 user group signs agreement to improve procurement and commonality]()
CV90 user group signs agreement to improve procurement and commonality
The CV90 is in service with or ordered by ten countries. The agreement between six of these countries is designed to create commonality to provide economies of scale and a reduced training burden.
