Rheinmetall receives EU funding to boost artillery production for Ukrainian war effort
Rheinmetall will produce thousands of artillery shells for Ukraine. (Photo: Ukraine MoD)
Rheinmetall has contracts to produce hundreds-of-thousands of artillery shells for Ukraine and new funding from the EU will boost the company’s manufacturing capability.
Rheinmetall will receive €130 million (US$141 million) from the EU under the Act of Support in Ammunition Production (ASAP) to expand the production of 155mm artillery ammunition and powder.
The funding will be committed to support projects in Germany, Hungary, Romania and Spain by Rheinmetall AG’s European subsidiaries, with the corresponding grant agreements expected to be signed in May 2024.
Rheinmetall has been increasing its production capacities since the invasion of Ukraine by Russia more than two years ago and the company will aim to produce up to 1.1 million artillery shells per year by 2027. Up to 1.5 million propellant modules and 3,000 tonnes of RDX explosives will be produced annually starting in 2026.
Further tenders will be expected in the future. In its recently published proposal for a European Defence Investment Programme (EDIP), the EU outlined plans to promote the expansion of production capacities for other defence products.
In addition to this award MBDA has nominated its Enforcer missile production ramp up programme, dubbed Enforcer Production Increase Campaign (EPIC), for funding within the European Commission’s ASAP programme.
The portable, shoulder-launched, lightweight, high-precision Enforcer is a fire-and-forget missile system with an operational range up to 2km.
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