Rheinmetall breaks ground on one of Europe's largest powder factories in Bavaria, investing ~€500M

Major Investment in Europe's Largest Powder Factory

Rheinmetall is significantly expanding production capacity for propellant charge components used in tube artillery and other large-caliber systems at its Nitrochemie subsidiary in Aschau am Inn, Bavaria. The site area has been expanded from approximately 90 hectares to 110 hectares, with several hundred million euros being invested in the project.

Workforce Growth and Job Creation

The workforce at Aschau continues to grow, having already increased by around 80 percent since 2022 to over 800 employees. Several hundred additional jobs are planned, with the target of reaching 1,400 employees at the site in the future.

Production Timeline and Capacity Targets

Production at the newly created facilities is scheduled to begin gradually from 2027. Currently, the Aschau site produces approximately:

• 1,700 tons of powder per year
• 300,000 propellant charge modules per year (in round-the-clock shift operations)

Over the next 24 months, production of powder and propellant charge modules is to more than double. This will result in additional annual production of:

• Up to 2,500 tons of powder
• Over 5 million combustible molded parts
• Over 1 million modular propellant charge modules

The entire value chain for modular propellant charges is handled from a single source at one site. Maximum production capacity is expected to be reached in 2028.

The Role of Propellant Charge

The propellant charge ("powder") is one of the most important components in weapon systems. After ignition, the powder burns in a controlled manner and without residue, propelling the projectile out of the weapon barrel toward the target.

Statements from Key Figures

Minister President Dr. Markus Söder

"Security and defense capability are the prerequisites for freedom. The groundbreaking ceremony for the plant expansion of the Rheinmetall subsidiary Nitrochemie in Aschau am Inn is a good day for security. Rheinmetall is investing 500 million euros in the largest and most modern powder factory in Europe. This makes a decisive contribution to resilience and autonomy in the defense sector and creates 500 new, secure jobs in the region. Germany, the EU, and NATO benefit from this. Because: Only those who can defend themselves will not be attacked. In Bavaria, security and defense have priority – a third of Germany's defense-tech companies are based in the Free State. With our own defense law, we are ensuring priority for defense companies. We are pioneers nationwide, just like with the Bundeswehr law!"

Parliamentary State Secretary Dr. Nils Schmid

"The expansion of production capacities, especially for ammunition, in Germany is a security policy necessity and also of the utmost importance for our partners. I am therefore grateful that the security and defense industry is making efforts at all levels to make supply chains more resilient. We see the result very impressively. The new facility here in Aschau is responding to the acute ammunition needs in Germany and Europe. The additional production capacity overall ensures increased sovereignty in Germany and Europe. It shows that democratic states are willing to take responsibility and stand up for each other. On behalf of the German government, we wish for a swift construction and the greatest possible success in this important contribution to the defense of Germany and Europe."

Armin Papperger, CEO of Rheinmetall AG

"Since its founding, Rheinmetall has been a center of competence for weapon and ammunition systems. As one of the few manufacturers in ammunition production, we cover the entire value chain – from the propellant charge to the primer and igniter, the projectile casing, to the explosive charge or warhead. None of these components may become a bottleneck. Autarky is crucial, especially for powder, which only a few manufacturers produce worldwide. The Aschau site will thus make a decisive contribution to the national sovereignty and credible defense capability of Germany and Europe."

Background: Rheinmetall "Firepower" Project and Further Capacity Expansion

Through the "Firepower" project, Rheinmetall is responding to the urgent demand for ammunition in the Western world. The company is investing massively in production, including:

• Construction of new ammunition plants (e.g., in Unterlüß)
• Further expansion of existing sites such as Nitrochemie

By 2030, Rheinmetall targets an annual group capacity of 20,000 tons of propellant charge powder to secure the ammunition needs of the Bundeswehr, NATO, and the EU. Over a fifth of this – 4,200 tons – will come from Aschau.

Overall, Rheinmetall is investing approximately €650 million in the production of propellant charge powder and its energetic precursor products, of which €350 million is allocated to Aschau. In addition to the Aschau site, production facilities in Wimmis (Switzerland), as well as Murcia and Burgo (Spain), are also involved.