Rheinmetall receives order from the EU to increase production of shells

German defence concern Rheinmetall will receive more than €130 million from the European Union to increase ammunition production.

Here's What We Know

Under the Ammunition Support Act (ASAP), the EU has granted Rheinmetall more than €130 million in subsidies. This funding is a significant part of the total amount of EUR 500 million that the EU has allocated to expand the production of 155 mm artillery shells and powder.

The six subsidiaries of Rheinmetall AG that will receive the funding will be implemented at facilities in Germany, Hungary, Romania and Spain. The relevant grant agreements are scheduled to be signed in May 2024.

Armin Papperger, CEO of the concern, expressed gratitude to the European Union for its trust and support, stressing the importance of artillery in modern military conflicts. He emphasised that amid Russia's full-scale war in Ukraine, the demand for ammunition has increased significantly in many countries.

Source: Rheinmetall