According to the Spanish website of Abesy on April 17, the Rhinemetallurgical Expal arms factory headquartered in Madrid, Spain specializes in the production of mortar shells, medium-caliber ammunition, fuzes and rocket propulsion systems. The parent company of the factory is Rheinmetallurgical, the largest military-industry company in Germany. Rheinmetall CEO Armin Papeg has ordered the plant's annual output to 450,000 shells, which will make Spain the largest producer of artillery ammunition in Europe.
After receiving an order for 155mm M107 shells worth 21 million euros at the beginning of this year, the company's management decided to increase investment based on new demand to achieve large-scale production.
Meanwhile, Rheinmetall is also building a new factory in Gelus, Lower Saxony, Germany to produce 155mm caliber shells. "We have added equipment to the new factory during construction, and the original planned production capacity of 200,000 pieces will be increased to 350,000 pieces," Papeg said in announcing the corporate strategy.
The company will invest about 600 million euros in the new Gelus plant, the largest investment under construction outside of its joint construction with local Ukrainian partners. The Ukrainian factory is expected to be fully put into production in 2026.
Such high output will put huge pressure on parts suppliers and raw materials supply chains. Papeg plans to ensure the implementation of the plan through Rheinmetall's U.S. factory.
"We have 10 factories in Europe that are being expanded or newly built. If production is expanded in the United States, parts may be produced for European orders such as the 'Boncat' tank in the future," Papeg said. This is seen as a concession to the Trump administration.
Rheinmetallurgy is one of the world's largest manufacturers of artillery ammunition. The EU believes that there is a strategic risk that the European military's ammunition supply depends on US production. The company's management is determined to reduce production across the Atlantic Ocean, but it is still unable to completely escape its dependence. (Translated by Han Chao)
[Editor in charge: Wang Jinzhi]
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