Rheinmetall’s €270 Million Kassel Investment to Boost Tank Production in Germany
Major Expansion Plans for Rheinmetall in Kassel
Overview of the Investment
BERLIN, Aug 27 (Reuters) - Defence company Rheinmetall will test drones, expand tank production and build a new logistics centre in the central German city of Kassel, investing about €270 million ($314.31 million) in the projects, Chief Executive Armin Papperger said on Thursday.
Tank Production Expansion
Europe’s Largest Tank Factory
• "Kassel will become the largest tank factory in Europe", Papperger said, adding the workforce there is set to grow to 3,500 employees from around 2,200 currently.
Logistics and Operations
New Logistics Centre
• The logistics centre is scheduled to begin operations at the end of 2027.
Drone Testing Centre
• Rheinmetall also plans to establish a drone testing centre at the site.
Strategic Importance of Kassel Plant
Key Role in Armoured Vehicle Production
• The Kassel plant plays a key role in Rheinmetall's production of armoured vehicles, including the Boxer wheeled armoured vehicle.
Financial Contributions and Support
State Funding
• The state premier for Hesse, which encompasses Kassel, Boris Rhein, said the state would contribute about €25 million.
Currency Exchange Rate
($1 = 0.8590 euros)
(Reporting by Timm Reichert und Matthias Inverard, Writing by Cian Muenster, Editing by Miranda Murray)