The German arms manufacturer Rheinmetall has opened a new ammunition factory in Lower Saxony. While Germany is massively increasing its defense spending, the expansion of the arms industry appears to be a response to the demands of NATO demands for more military power.
A new Rheinmetall ammunition plant has now been opened in Unterlüß in Lower Saxony. According to the company, the plant is the largest of its kind in Europe. It will primarily produce the NATO standard 155 millimeter calibre, which has been in use since the beginning of the Russian war of aggression against the Ukraine has been in high demand.
High-ranking guests from politics and the military attended the opening: Germany’s Defense Minister Boris Pistorius, Finance Minister and Vice Chancellor Lars Klingbeil (both SPD) and NATO Secretary General Mark Rutte. All three used the event to send political messages: To Moscow as well as to the European partners.
Rheinmetall CEO Armin Papperger described the new plant as a “milestone for Europe’s security”. Annual production in Unterlüß is set to increase to up to 350,000 shells by 2027. Together with other sites, the Group intends to double its total production to 1.5 million shells. “This will ensure the operational capability of NATO armies in the long term,” explained Papperger.
Rocket engines are also to be produced at the plant in the medium term. Around 500 million euros have been invested and around 500 jobs are to be created at the same time. According to the company, this will be the largest production facility for artillery ammunition in Europe at full capacity.
The expansion plans reflect the security policy situation. The Ukraine needs large quantities of artillery ammunition, while at the same time the Bundeswehr also wants to replenish its stocks. In Western armies, 155-millimeter ammunition is considered the backbone of modern artillery. Papperger made it clear that Rheinmetall intends to use the new capacities to expand its position as a leading supplier in Europe.
The Group does not see the plant as an isolated case. New plants are also being built in Lithuania and the UK, and a further another site has been agreed in Romaniaand contracts are soon to be signed in Bulgaria. “We can set up similar factories in other NATO countries within a short space of time,” says Papperger.
For German politicians, however, the inauguration was an opportunity to underline their own security policy line. Vice Chancellor Klingbeil announced that Germany would spend around 3.5 percent of its economic output on defense by 2029. The NATO quota should already be 2.8 percent by 2026. “Germany is and will remain a reliable partner,” said Klingbeil. And Defense Minister Pistorius emphasized that the Federal Republic of Germany is “facing up to its responsibility”.
NATO Secretary General Mark Rutte also used the occasion to point out the urgency of further investment. Western countries have recognized that military strength and industrial capacity are closely linked. “Without sufficient ammunition, the best armed forces are of little use,” he said.
Under pressure from the USA, the alliance has committed to significantly increasing its military spending. The previous two percent target has been replaced by a new framework: in future, 3.5 percent of gross domestic product is to be spent on core military tasks such as troop strength and armaments. In addition, 1.5 percent is to be spent on extended defense measures such as cyber defense, transport routes, airports and barracks.
“This development is also relevant for Austria. The discussion about how the domestic security strategy should react to the rapid armament in Europe is likely to intensify.
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For Germany, this means a massive restructuring of the federal budget. Defense funding is already posing challenges for the coalition of CDU/CSU and SPD in Berlin. This development is also relevant for Austria. On the one hand, the opening shows how strongly the arms industry is growing in neighboring Germany. Rheinmetall is thus becoming a central supplier for the entire EU and also plays a role in joint procurement projects. On the other hand, the discussion about how the domestic security strategy should react to the rapid armament in Europe is likely to intensify.
At around 1.17 percent of GDP, Austria’s defense budget is well below the NATO target. How does this affect a neutral country? Quite a lot, actually. Experts point out that even a neutral country is dependent on a minimum level of military security of supply. Not least when it comes to cooperation within the European Union.
Here for further reports on the Rheinmetall company and here to further articles about NATO.
