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Rheinmetall receives $140 million in EU funding to boost ammunition production

Ammunition
Ammunition

The EU has granted EUR 130 million ($140 million) to German defense contractor Rheinmetall to increase its ammunition production capacity, the company announced on March 26.

Europe's largest ammunition producer noted that more than a quarter of the total EUR 500 million was allocated by the EU under the Act in Support of Ammunition Production (ASAP) to expand 155mm artillery shell production across Rheinmetall’s European subsidiaries.

Read also: Up to 1.5 million shells available to Ukraine through the Czech program — report

This funding will bolster operations in Germany, Hungary, Romania, and Spain, with the signing of the respective grant agreements expected in May 2024.

Read also: Ukraine set to launch production of 155 mm shells by second half of year

“The significance of artillery has become clear from the Ukrainian defensive campaign,” said Armin Papperger, CEO of Rheinmetall.

Read also: Germany’s Rheinmetall to open new ammo plant in Ukraine capable of producing ‘six-digit’ number of 155 mm shells

“European armed forces also need to replenish their stocks of artillery munitions. We are ready for this challenge and are already making the necessary preparations.”

Since 2022, Rheinmetall has been increasing its manufacturing capacity. By 2027, the company aims to manufacture up to 1.1 million artillery shells annually.

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Read the original article on The New Voice of Ukraine