Rheinmetall officially launched Europe’s largest munitions factory today in Unterlüß, northern Germany, an expansive facility spanning approximately 30,000 square meters, the equivalent of five football pitches. The opening, attended by NATO Secretary-General Mark Rutte, German Defence Minister Boris Pistorius, and Vice-Chancellor Lars Klingbeil, underscores Berlin’s intensified rearmament drive amid mounting geopolitical pressures.
With a €500 million investment ($585 million), the plant dubbed “Werk Niedersachsen”—began construction in early 2024 and initiated test operations in Q2 2025. This facility is slated to ramp up production from 25,000 rounds this year to a full annual capacity of 350,000 artillery shells by 2027. Plans are already underway to add a rocket motor production line and possibly warhead manufacturing at the site.
According to Rheinmetall’s CEO Armin Papperger, the Unterlüß plant is the cornerstone of a “pan-European defence ecosystem.” He proposed replicating similar facilities across NATO allies, including Lithuania and the UK, and underscored expansion potential in Romania, Latvia, and even Ukraine to bolster local defence capacity.
The timing of this launch aligns with Germany’s aggressive rearmament push, a response to Russia’s invasion of Ukraine. Under Chancellor Friedrich Merz, Berlin has pledged to build Europe’s “strongest conventional army,” relaxing spending caps and pursuing weapons independence. “This facility proves that Germany can act swiftly when it matters,” Papperger said, echoing the sentiment of a times-of-crisis industrial pivot. The plant is also expected to support a historic munitions order valued at approximately €8.5 billion placed by Germany in mid-2024.
Beyond Germany, Rheinmetall is extending its footprint across Europe. It secured a €535 million contract with Romania to build an ammunition powder factory, slated to start construction in 2026 and employ 700 workers. Bulgaria is also slated to host joint ventures for gunpowder and 155 mm artillery shell production under investments exceeding €1 billion.
This wave of expansion is part of a broader surge in European defense manufacturing. An FT analysis shows that arms factories are expanding at triple the pre-war rate, boosting EU ammunition output from 300,000 to 2 million rounds annually with Rheinmetall’s alone poised to account for a substantial share by 2027.
