Rheinmetall is moving to enhance Germany’s national security preparedness by building a new factory at its Unterlüß site in the Lüneburg Heath, Lower Saxony, further enhancing the country’s self-reliance in ammunition production.
An official ground-breaking ceremony for Werk Niedersachsen, as the factory is to be known, was held on 12 February 2024 in the presence of German Chancellor Olaf Scholz, Danish Prime Minister Mette Frederiksen, and German Defence Minister Boris Pistorius as well as Rheinmetall AG Chairman Armin Papperger. Numerous other prominent personalities from the world of politics, administration, the armed forces and industry were also present.
Werk Niedersachsen will produce artillery ammunition, explosives and rocket artillery components. The factory will eventually manufacture some 200,000 artillery shells each year, along with up to 1,900 tonnes of RDX explosive and, optionally, other components for producing ammunition charges. In addition, the production of rocket engines and possibly warheads could take place at the site, which will be necessary, for example, for the planned German rocket artillery system that Rheinmetall is developing with US company Lockheed Martin. An agreement to develop such a system, tailored for the Bundeswehr and based on existing and combat-proven components produced in Germany, was signed by the two companies in April 2023.
“To secure Germany’s strategic sovereignty in the large-calibre ammunition domain, we’re creating a national production facility that sets new standards and will primarily meet the needs of the German Bundeswehr,” Papperger was quoted as saying in a Rheinmetall press release. “With Werk Niedersachsen we’re establishing another European centre for producing artillery ammunition and other effectors at our historic Unterlüß site. The move reflects our sense of responsibility and resolve to contribute materially to the ability of our country and our NATO partners to defend itself,” he added.
Werk Niedersachsen represents an investment, funded solely by Rheinmetall, in the EUR 300 million range. The factory will also mean around 500 new jobs in Unterlüß.
“Rheinmetall’s new factory will make it possible to meet the Bundeswehr’s own needs through domestic production and – especially in a crisis – to assure unrestricted transfers to partner nations,” Rheinmetall stated. “Previous dependency on export permits issued by other countries will thus be eliminated, giving Germany full sovereignty in this national security-relevant domain. In the process, Rheinmetall will create a complete value-added chain for artillery ammunition in Unterlüß, enabling it to offer the ‘full shot’ from a single source, including the shell, fuze, explosive charge and propelling charge.”
Werk Niedersachsen will operate largely autonomously, according to Rheinmetall, with all the work steps necessary for producing artillery shells carried out on location.
The company’s top priority is the start production as soon as possible. Following a construction period of around 12 months, annual capacity will be 50,000 shells a year. Germany’s initial share of value added will come to 50%, gradually increasing in the second year of production to 80% and to 100% in the third. By this point, Germany will have a fully self-sufficient supply of artillery ammunition.
In terms of volume, annual capacity will reach 100,000 shells in the second year of production, later rising to 200,000 a year.
