Well funded: More money for artillery ammunition.

Rheinmetall receives over 130 million euros in funding from the European Union to increase ammunition production. This represents over a quarter of the total amount of 500 million euros that the EU has allocated for the expansion of 155mm artillery ammunition and powder production under the Act of Support in Ammunition Production (ASAP), distributed among a total of six projects of European subsidiaries of Rheinmetall AG. Projects in Germany, Hungary, Romania, and Spain will be supported.

ASAP is the EU's first funding initiative for expanding ammunition production. The respective Grant Agreements are expected to be signed in May 2024.

"We are grateful for the trust of the European Union in considering Rheinmetall, one of the key European suppliers of 155mm ammunition, for significant support," said Armin Papperger, CEO of Rheinmetall AG. "The importance of artillery is evident from the defense efforts in Ukraine. European armed forces also need to replenish their stocks of artillery ammunition. We are ready for this and are already working on it."

Rheinmetall has been increasing its production capacities since 2022. By 2027, the company aims to be able to produce up to 1.1 million artillery shells annually. This will involve producing up to 1.5 million propellant modules and 3,000 tons of RDX explosive annually from 2026 onwards.

Further tenders are expected in the future. The EU plans, among other things, to promote the expansion of production capacities for additional defense products in the recently published proposal for a European Defence Investment Programme (EDIP).

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