German defence and automotive technology company Rheinmetall has significantly raised its artillery shell production target at its Unterluess (Unterlüß) site in Lower Saxony. It plans to manufacture up to 350,000 shells per year, an increase from the previously planned 200,000. The company invested approximately €600m in the facility, which is now set to become the second-largest artillery production plant in Europe, following a site in Spain expected to produce 450,000 shells per year. The announcement was made by CEO Armin Papperger in an interview with Handelsblatt.

Papperger projected an order volume of €300bn for the company over the next five years. He stated that Europe’s defence budget could reach as much as €1trn by 2030, with around half of that expected to be directed toward investment. Rheinmetall currently enjoys about 18% share of such defence-related investment across Europe. He added that Germany’s growing defence requirements and budget allocations were likely to boost the company’s share to 25% in the coming years.

Rheinmetall also aimed to significantly expand its presence in the United States, where it currently generates $1bn in turnover. Papperger stated that the company planned to at least double that figure.

European rearmament

Papperger described the European Commission’s as irreversible. “Everyone wants production facilities--and we can build them,” he said. He explained that the surge in demand was being driven by European governments seeking to secure sustained ammunition supplies amidst changing geopolitical conditions.

In the same interview, Papperger voiced scepticism regarding the impact of delivering Taurus cruise missiles to Ukraine. He argued that such weapons would not alter the course of the conflict, stating, “the Taurus is not a gamechanger.” He emphasised instead the strategic importance of conventional artillery ammunition, claiming it was the only effective means by which Ukraine could hold Russian forces at a distance.

Paperjam contacted Rheinmettal for additional comment. As of the time of publication, Rheinmetall had not provided one.