The opened a new factory at its existing site in Unterlüss in northern Germany on Wednesday, boasting that once it reaches capacity it could become .
CEO Armin Papperberger said that the production of 155 mm caliber artillery shells would be progressively ramped up, to reach 350,000 units per year by 2027. These artillery shells are in particular demand and short supply in Ukraine, and Europe and NATO members have been scrambling to replenish their stockpiles and increase production capacity.
Rheinmetall plans to increase unit production at several facilities as well as the new one in Unterlüss, near Hanover.
NATO’s Rutte, German ministers attend ceremony
Secretary General Mark Rutte, German Defense Minister and Finance Minister Lars Klingbeil toured the facility with Papperberger and other officials on Wednesday.
According to Rheinmetall, the company invested roughly €500 million (roughly $580 million) in this new facility and another that will focus on rocket motors.
The company’s site in Unterlüss already includes other smaller areas for artillery production and for the production of Puma tanks, as well as a large firing range.
“With this we’re opening a new chapter both in our company’s history and that of our site at Unterlüss with regard to artillery production,” Papperberger said.
Earlier this month, the company reported rising turnover and profits, as well as record order figures — turning orders into deliveries and revenues can take some time in this sector — for the year to date.
Last July, , in a sign of the company’s importance to Kyiv’s military.
Rheinmetall stock up roughly 2,000% since Russia invaded Ukraine
Investors have been flocking to Rheinmetall stock in recent years, and particularly since Donald Trump’s election to a second term as US president.
Stagnant at or below €100 for decades, it doubled in just a few months after .
It continued to climb steadily as and as the conflict in eastern Europe dragged on, reaching around €500 in time for last year’s US presidential eletions.
Then in the first half of this year it went into overdrive, peaking at almost €1,900 in late May.
Investors seeking the next fashionable stock to inflate have evidently decided that even if Germany and other European NATO members , or when, pouring taxpayer money into the coffers of companies like Rhinemetall will play a part.
The post Germany: Rheinmetall opens new artillery ammunition factory appeared first on Deutsche Welle.
