Rheinmetall Greenlights Hungary Ammunition Plant Expansion.

An artist’s rendering of Rheinmetall’s Várpalota plant. Photo, Rheinmetall.

Rheinmetall’s ammunition plant in Várpalota, Hungary, has moved into its second phase of construction as demand for production continues to rise.

The arms manufacturer explained that the “Várpalota 2.0” expansion, managed by holding company N7, is a direct response to the region’s ammunition shortage caused by the ongoing Russo-Ukrainian war.

The size of the plant will increase by 20 hectares, making the facility’s new total land coverage approximately 120 hectares.

The factory’s product range will include new types of ammunition, including 155mm artillery shells for the PzH 2000 self-propelled howitzer and 120mm ammunition for the Leopard 2 main battle tank and Panther KF51 EVO.

Additionally, 200 jobs will be created for the expansion.

Production in the plant is scheduled to begin in early 2026.

Further Developments
Aside from an increase in ammo production, the Várpalota plant will house product development and acceptance testing.

The developers seek to host explosives production in a different plant being built parallel to the ammunition factory. The endeavor is also a joint venture between Rheinmetall and N7.

Rheinmetall has recently seen a significant push for production, targeting 700,000 artillery rounds from its plants in Australia, Germany, South Africa, and Spain.

The company has also opened a dialogue with Lithuania to open an arms factory in the Baltic country.