Rheinmetall CEO emphasizes the need for Europe to match Russia's ammunition production as it launches a large-scale facility.

Written by Emily J. Thompson, Senior Investment Analyst

Source: CNBC

Updated: Aug 28 2025

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Source: CNBC

New Ammunition Factory: Rheinmetall has opened a new factory in Northern Germany, which is set to become Europe's largest ammunition production facility, aiming to increase output to compete with Russia's artillery production.
Production Capacity: Currently, Europe produces around 2 million artillery rounds annually, with Rheinmetall contributing over half. The new plant aims to produce 350,000 artillery shells per year by 2027.
Increased Defense Spending: Germany plans to more than double its defense spending to 153 billion euros by 2029, supported by reforms to its debt rules, as it and other NATO members commit to enhancing military capabilities.
NATO's Response: NATO Secretary General Mark Rutte emphasized the urgency of increasing production of complex military equipment, highlighting the rapid weapon production rates of Russia and China.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.