The plant originally was slated to produce over 150,000 shells a year. At Ukraine’s request, Rheinmetall increased its planned capacity to 300,000 units. Papperger told investors during the company’s midyear financial briefing that the expansion faces hurdles, including delays in Ukrainian funding and bureaucratic red tape slowing construction.
Rheinmetall already operates a facility in Ukraine through a joint venture with state-owned Ukroboronprom. The company intends to build a total of four factories in the country; the second facility is now being prepared for launch.
In October 2024, Papperger said he expects the first plant to be fully operational by the end of that year. The Düsseldorf-based firm, which manufactures ammunition and military vehicles—many of them for Ukraine—formed its joint venture with the Ukrainian defense industry in October 2023.
In March, Rheinmetall received EUR130 million ($151 million) in EU funding to boost its artillery ammunition output.
On May 3, Papperger urged Western governments to raise their military spending, warning that Europe is not ready for a large-scale conventional war.