RHEINMETALL: New Explosives Factory in Hungary

The Hungarian government is building a new explosive factory at the Rheinmetall site in Várpalota, Hungary, for the production of RDX (Research Department eXplosive). The plant technology will be supplied by Rheinmetall Denel Munition Pty (Ltd) from South Africa. According to the contractual agreement signed on December 15, 2022, a new plant will be equipped, which will be operated in the future by a joint venture between Rheinmetall and the Hungarian N7 Holding. The total value of the order is in the low triple-digit million EUR range.

The project will start in 2023 after the planning phase has already been completed, so that production can begin by 2027. The explosive manufactured in the new plant can be used for artillery, tank, and mortar ammunition, among other applications. The contract includes the delivery of plant technology, technology, process know-how, as well as related documentation, training, and all activities to establish serial production capability.

The project is a strategic investment from Hungary in collaboration with Rheinmetall, to address the expected shortage of explosives in the face of the anticipated demand for ammunition in Europe and NATO. At the same time, it promotes Europe's independence from imports from overseas.

After the completion of the plant and its handover to the Hungarian government, Rheinmetall AG will be the primary buyer of the manufactured explosive.

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