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
-
![MyDefence delivers counter-drone system to US Army ahead of livefire exercise]()
MyDefence delivers counter-drone system to US Army ahead of livefire exercise
The Soldier-Kit system consists of detector, jammer, tablet and wideband antenna and is being evaluated as part of Project Flytrap 3.0 counter uncrewed aerial system (CUAS) exercise.
-
![Arquus and Milrem push their UGVs fitted with long-range missiles]()
Arquus and Milrem push their UGVs fitted with long-range missiles
Arquus displayed the Drailer uncrewed ground vehicle (UGV) integrating the Akeron LP long-range missile at the Techterre technology demonstrator event ahead of trials in September.
-
![Sweden turns to Nammo and Rheinmetall as world demand grows for 155mm shells]()
Sweden turns to Nammo and Rheinmetall as world demand grows for 155mm shells
Demand for ammunition continues to increase with manufacturing capability growing to match. Sweden have turned to the two supply lines of Rheinmetall and Nammo as part of a Nordic effort to meet demand. The Polish Government has also announced a US$700 million investment to boost manufacture of munitions.
-
![Contract moves new Abrams tank forward in the face of cuts]()
Contract moves new Abrams tank forward in the face of cuts
Several US Army vehicle programmes were axed by US Secretary of Defense Pete Hegseth’s plans to transform the US Army, as outlined in the Letter to the Force: Army Transformation Initiative document. However, the new generation Abrams M1E3 main battle tank (MBT) was singled out for survival. But what will it look like?
