From underdog to investment star
29. June 2026
Ground-breaking ceremony in February 2024, inauguration in August 2025: after just 15 months of construction, Rheinmetall began operations at what is currently Europe’s largest and most modern munitions plant in Unterlüß. This marks a turning point in more ways than one.
One of the largest ammunition manufacturers in the Western world
The Lower Saxony plant is one of the largest and most advanced ammunition production facilities in Europe. Rheinmetall has invested around €300 million in the factory. Supported by state-of-the-art machinery and robotics, around 350 employees are set to produce up to 350,000 artillery projectiles per year on a site covering around 30,000 square metres. Production has commenced in stages. Additionally, engine production for artillery rockets is scheduled to begin in 2027.
The supply of ammunition is essential for restoring the defence capabilities of Germany and its European allies. As a leading manufacturer, Rheinmetall is taking responsibility in this area and making large-scale investments. Most recently, in the summer of 2023, the Group spent around €1.2 billion on the acquisition of the Spanish manufacturer Expal Systems. Within its production network, which also includes sites in Spain and South Africa, Rheinmetall aims to produce a total of around 1.1 million artillery rounds per year from 2027 onwards. This makes Rheinmetall one of the largest ammunition manufacturers in the Western world.
Mass production instead of small-scale manufacturing, months instead of years – Europe and NATO need ammunition, and they need it fast. With the support of the relevant authorities, Rheinmetall built the new Lower Saxony Plant at its long-established site in Unterlüß in the Lüneburg Heath in record time. “By working at a new Rheinmetall pace, we have created the capability to independently meet the Bundeswehr’s future requirements through domestic production and to guarantee independent deliveries to partner nations, when necessary,” emphasised Rheinmetall CEO Armin Papperger. “This is a real turning point.”
The international guest list was further evidence of how times have changed. Numerous representatives from politics and the military travelled to the plant opening in Unterlüß: Vice Chancellor and Federal Minister of Finance Lars Klingbeil, Federal Minister of Defence Boris Pistorius, NATO Secretary General Mark Rutte, General Carsten Breuer, Inspector General of the Bundeswehr, as well as Olaf Lies, Minister-President of Lower Saxony and, as Bulgaria’s highest-ranking guest, President Rumen Radev.
“Here we are investing in our security,” Lars Klingbeil emphasised in his speech at the opening ceremony. “This plant shows that we are taking action.” Federal Minister of Defence Boris Pistorius addressed Rheinmetall and the defence industry as a whole: “You, the industry, deliver what is important: speed and substance.” NATO Secretary General Mark Rutte emphasised in his speech: “Being strong and successful is exactly what Rheinmetall is.”
Rheinmetall also stands ready as a partner internationally. “Rheinmetall is not limiting itself to Germany when it comes to building such plants,” Armin Papperger pointed out. “This means that we can also erect comparable plants in other NATO countries within a very short time, thus creating a pan-European defence ecosystem.”
The urgency of the defence alliance’s need for ammunition was underscored even before the actual ceremony began. Just before the inauguration ceremony, NATO member Romania awarded Rheinmetall a major order for an ammunition production facility. Radu-Dinel Miruță, Romania’s Minister of Economy, and Armin Papperger signed a corresponding letter of intent on site. Together with partners, the Düsseldorf-based Group is planning to invest around €550 million in the new plant in Romania. Specific projects have also already been launched in Lithuania and the United Kingdom. More are to follow.
Bildergalerie
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