The ongoing construction of the Rheinmetall ammunition plant in Várpalota, Hungary, is now entering its second phase, commencing in January 2024. Originally conceptualized before February 2022, the project, initiated by the Hungarian holding company N7 for the joint venture Rheinmetall Hungary Munitions Zrt., represents a strategic investment. The endeavor aims to address the foreseen increase in ammunition demand in Europe and NATO, supplementing it with the goal of reducing Europe’s reliance on overseas imports.
The first expansion phase of the plant, already underway, will facilitate the production of 30 mm medium-caliber ammunition for the Lynx infantry fighting vehicles manufactured at Rheinmetall’s new tank plant in Zalaegerszeg, Hungary, with production scheduled to commence in 2024.
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The upcoming “Várpalota 2.0” expansion will increase the plant’s size by 20 hectares, reaching approximately 120 hectares, and increase the workforce to a total of around 200 employees. This expansion also introduces an array of new ammunition types, notably 155 mm artillery shells for the PzH 2000 self-propelled howitzer and 120 mm ammunition designed for the Leopard 2 main battle tank and its potential successor, the Panther KF51 EVO tank. Production for these new ammunition types is slated to initiate in early 2026, accompanied by Rheinmetall’s commitment to conducting development and acceptance testing at the Várpalota facility.
As part of this strategic capacity expansion, an additional plant for the production of explosives (RDX) is concurrently being built on the same site through a joint venture between Rheinmetall and N7.
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