Rheinmetall has laid the foundation stone for its new factory in Várpalota, Hungary, to support the production of ammunition for various land-based military platforms.
The ammunition production at this unit will be carried out by the joint venture company Rheinmetall Hungary Munitions, in collaboration with the Hungarian state.
Initially, the new factory will manufacture 30mm-medium-calibre ammunition for the Lynx infantry fighting vehicles, which are presently being produced by Rheinmetall at its Zalaegerszeg facility.
This work is expected to commence from 2024.
Later in the second phase, Rheinmetall is planning to expand the manufacturing capacity by initiating the production of more types of ammunition at the Várpalota plant.
The company said that it may undertake the production of ammunition for the Leopard 2 main battle tanks, as well as for the PzH 2000 self-propelled howitzers, both currently in service with the Hungarian Army.
The plant will also export some of its products to other countries.
In addition, the company also plans to commence research and development work at the Várpalota plant.
The plant is scheduled to achieve full production capacity by 2025.
Once the construction is complete, the new Várpalota production unit will provide different job opportunities to approximately 200 people and, as the factory grows, the number of employees will further be increased.
The Várpalota, Hungary, plant CEO Michael Krebs said: “We need employees in our team with experience in production, quality assurance, purchasing, warehousing and logistics, plant maintenance, and administration.”
In another development, Rheinmetall has entered into a strategic partnership with Dutch IT server solutions specialist Incooling to acquire shares.
The acquisition of Incooling’s shares will expand Rheinmetall’s expertise base in four major technology clusters including sensors, artificial intelligence, alternative mobility, and automation.