Rheinmetall celebrates official takeover of Hungarian ammunition plant

Rheinmetall celebrated the official takeover of its new state-of-the-art 30 mm ammunition factory in Várpalota, Hungary, on 29 July 2024, with Hungarian Defence Minister Kristóf Szalay-Bobrovniczky and Rheinmetall CEO Armin Papperger both attending the event.

The new production facility in Várpalota, which will start production in October 2024, is a significant milestone in Rheinmetall’s expansion strategy, with the company stating that the facility also underlines its “commitment in providing up-to-date technologies to support the defence capabilities of its partners”.

The factory is designed to produce 30 mm ammunition for Hungarian KF41 Lynx infantry fighting vehicles (IFV), which are being built in Zalaegerszeg, Hungary. The first Hungarian-produced KF41 was handed over to the Hungarian armed forces on 24 July 2024. A total of 209 Lynx KF41s are to be supplied to the Hungarian armed forces in seven variants, with the first 46 coming from Germany.

Ammunition for main battle tanks and artillery as well as igniters will also be manufactured in Várpalota in a second phase of operation. In the final expansion stage, the site will cover a total of around 150 hectares.

“The opening of this state-of-the-art ammunition factory in Várpalota is a clear signal to our commitment concerning innovation and quality,” Papperger stated at the opening. “This facility will not only strengthen the defence capabilities of our global partners and in Hungary, but will also contribute to the economic development of the region.”

In his address Szalay-Bobrovniczky emphasised the strategic importance of the co-operation with Rheinmetall and stressed the joint efforts in strengthening the national security and defence industry.

The new factory in Várpalota is equipped with the latest technology and will create more than 200 jobs in the region, making an important contribution to the local economy. The establishment of the Lynx IFV and other Lynx models also strengthens the development of the Hungarian defence industry.