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

Major Investment in Expanded Production Capacity

Rheinmetall is significantly increasing production capacity for propellant charge components used in tube artillery and other large-calibre 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 expand. Since 2022, employee numbers have risen by around 80 percent to over 800 staff. Several hundred additional jobs are planned, with the target of employing 1,400 colleagues at the site in the future.

Production Timeline and Output Targets

Production in the newly created facilities is scheduled to begin gradually as early as 2027.

Current annual production at Aschau (round-the-clock shift operations):

• Approximately 1,700 tons of powder
• Around 300,000 propellant charge modules

Expansion targets over the next 24 months (more than doubling current output):

• Up to 2,500 additional tons of powder
• Over 5 million combustible moulded parts
• Over one million modular propellant charge modules

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

The Role of Propellant Charges

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 defence 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 defence 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 defence have priority – a third of Germany's defence-tech companies are based in the Free State. With our own armaments law, we are ensuring priority for defence companies. We are pioneers nationwide, just as 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 defence industry is making efforts at all levels to make supply chains more resilient. We see the result very impressively. With the new facility here in Aschau, the acute ammunition needs in Germany and Europe are being addressed. 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 for this important contribution to the defence of Germany and Europe."

Armin Papperger, CEO of Rheinmetall AG

"Since its founding, Rheinmetall has been a centre 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 defence capability of Germany and Europe."

Background: Rheinmetall Project "Firepower" and Further Capacity Expansion

With the "Firepower" project, Rheinmetall is responding to the urgent demand for ammunition in the Western world. The company is investing massively in production, including the construction of new ammunition plants such as the one in Unterlüß and the further expansion of existing sites such as Nitrochemie.

Key targets by 2030:

• Annual group capacity of 20,000 tons of propellant powder to secure ammunition needs of the Bundeswehr, NATO, and the EU
• Over one-fifth of this (4,200 tons) will come from Aschau

Total investment:

• Rheinmetall is investing around €650 million in the production of propellant powder and its energetic precursor products
• Of this, €350 million is allocated to Aschau

In addition to the Aschau am Inn site, production facilities in Wimmis (Switzerland) as well as Murcia and Burgos (Spain) are also involved in the expansion.