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Rheinmetall Expands European Defense Production to Meet Surging Demand

The German arms manufacturer plans to double capacity at ten sites, increase U.S. production involvement, and scale artillery and air-defense output as Europe boosts defense budgets.

Overview

  • Rheinmetall is doubling production capacity at ten European facilities and considering using U.S. plants to produce components for its Lynx combat vehicle.
  • The company plans to manufacture over 1,000 Skyranger air-defense systems in the next decade, with Germany expected to need 200–300 units for border and convoy security.
  • Annual artillery shell production at Unterlüß is being increased from 200,000 to 350,000 rounds, making it Europe’s second-largest artillery factory after Spain.
  • Rheinmetall is expanding its Ukrainian artillery factory, originally planned for 150,000 rounds annually, with completion expected by 2026.
  • Fueled by record 2024 profits of €1.5 billion, Rheinmetall is positioning itself as a key player in Europe’s €1 trillion projected defense spending by 2030.

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