Published by Global Banking & Finance Review®
Posted on September 25, 2025
1 min readLast updated: January 21, 2026
Add as preferred source on GoogleRheinmetall is set to sign an agreement for a new ammunition plant in a NATO member state, enhancing Europe's defense production.
DUESSELDORF, Germany (Reuters) -German defence contractor Rheinmetall said on Thursday it plans to sign a preliminary agreement in Hamburg later in the day to build a new ammunition factory in an as-yet unspecified NATO member state.
European states have been boosting arms and ammunition production capacity since Russia's invasion of Ukraine in 2022.
Rheinmetall last month opened a new ammunition plant in northern Germany, which is set to become Europe's largest at full capacity, saying at the time that similar factories could be built in other NATO countries.
(Reporting by Matthias InverardiWriting by Ludwig BurgerEditing by Rachel More)
Ammunition production refers to the manufacturing of explosive projectiles used in firearms and artillery. It includes the development, assembly, and testing of various types of ammunition for military and civilian use.
A NATO member state is a country that is part of the North Atlantic Treaty Organization, a military alliance established for mutual defense against aggression. Membership requires adherence to democratic principles and collective defense commitments.
Expanding ammunition production in Europe is significant for enhancing defense capabilities, particularly in response to security threats. It aims to ensure that NATO member states can adequately supply their military forces.
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