(PRESS RELEASE) DÜSSELDORF, 4-Jan-2023 — /EuropaWire/ — Rheinmetall, a German integrated technology group active in the automotive and defence industries, has announced that its South Africa subsidiary Rheinmetall Denel Munition has been awarded a contract to supply technology for a new explosives plant in Várpalota, Hungary. The plant, which will produce RDX (Research Department eXplosive), will be owned and operated by a joint venture consisting of Rheinmetall and N7 Holding, a state-owned Hungarian enterprise. The contract, which was signed on December 15, 2022, is worth a low three-digit million euros.
Now that the planning phase is complete, the project will start in 2023, so that production can begin by 2027. The explosives produced in the new plant can be used for artillery, tank, and mortar ammunition, among other things. The contract covers the supply of plant engineering, technology, and process know-how as well as the associated documentation, training, and all activities necessary to achieve full-scale production.
The project is a strategic investment by Hungary in cooperation with Rheinmetall in response to the shortage of explosives resulting from strong demand for ammunition in Europe and NATO. At the same time, it promotes Europe’s independence from overseas imports in this sector.
Once completed and taken over by the Hungarian state, Rheinmetall AG will be the primary customer for the explosives produced by the plant.
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SOURCE: RHEINMETALL AG