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The Hungarian state is building a new explosives plant to produce RDX (Research Department eXplosive) at its site in Várpalota, Hungary, for which Rheinmetall Denel Munition Pty (Ltd) from South Africa is supplying the necessary plant technology, Rheinmetall writes in a press release. Under the contract signed on 15 December 2022, a new plant will be built and operated by a joint venture consisting of Rheinmetall and N7 Holding, a state-owned Hungarian enterprise. The contract is worth a figure in the low three-digit million-euro range.

The project is to start in 2023, so that production can begin by 2027. The explosives produced in the new plant can be used for artillery, tank, and mortar ammunition, among other things. The contract covers the supply of plant engineering, technology, and process know-how as well as the associated documentation, training, and all activities necessary to achieve full-scale production.