25 Sep 25. Latvia orders Rheinmetall ammunition factory – Group expands global ammunition production network. Rheinmetall is further expanding its ammunition production capacity and is now planning to build a modern production facility for 155 mm calibre artillery ammunition in Latvia. In the presence of Latvian Prime Minister Evika Siliņa, a corresponding Memorandum of Understanding was signed today in Hamburg. The facility shall be operated by a joint venture between Rheinmetall Waffe Munition GmbH (51%) and the Latvian State Defence Corporation, LLC of Latvia (49%). The key points were documented in a memorandum of understanding, which was signed by representatives of both sides. By establishing its own 155 mm ammunition production facility, Latvia is taking a further step towards strengthening its defence capabilities and expanding its independent defence sector. The produced ammunition is to ensure supplies for the National Armed Forces of Latvia, as well as strengthen security of supply chains and be available to partner countries. The production line will feature a state-of-the-art production facility, including a shell forging and filling line. Construction is scheduled to begin in spring of 2026, with production expected to start around a year later. The €275m investment will enable the facility to produce tens of thousands of artillery shells and create at least 150 local jobs. Regional companies and the domestic economy will be integrated into the facility’s value chain.
Latvian Prime Minister Evika Siliņa said: “Signing this MoU is a clear step towards strengthening Latvia’s security and developing our defence industry. By aiming to establish partnership with Rheinmetall Latvia not only builds stronger national defence, but also contributes to security of supply in Europe, enhancing industrial capacity as well as facilitating economic growth. I have been directly involved in this process because I believe that investing in our defence industry is investing in the safety and future of our people.”
Armin Papperger, CEO of Rheinmetall AG: “We are delighted to be able to contribute to Latvia’s national sovereignty in the field of ammunition. At the same time, the production line will strengthen our position as the world’s leading manufacturer of artillery ammunition. At Rheinmetall, we are committed to supporting our customers as a reliable partner with first-class services. I am confident that we will also build similar partnerships for ammunition production in other countries”.
Ingrida Kirse, Board Member of the State Defence Corporation: “With the utmost sense of responsibility, we are taking on the entrusted task of jointly establishing an artillery ammunition production facility in Latvia. I am confident that all the necessary conditions are in place, as this project brings together several essential components. On the one hand, the mission of the State Defence Corporation is to ensure the needs of the National Armed Forces and to foster the development of Latvia’s defence industry by developing manufacturing capacity. On the other hand, Rheinmetall contributes its longstanding expertise, accumulated know-how, high standards, and international recognition. This synergy forms the foundation of a strong partnership that will both advance the industry and strengthen the security of Latvia and the wider region.”
It was only at the end of 2024 that Rheinmetall was commissioned by Latvia’s neighboring Lithuania to build a modern ammunition production facility for artillery shells. Construction of the plant, which is set to begin in a few weeks at the Baisogala site in the heart of Lithuania, mirrors the size and design to the facility planned for Latvia.
25 Sep 25. Rheinmetall plans to sign agreement on new ammunition plant in NATO state. German defence contractor Rheinmetall (RHMG.DE) 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. (Source: Reuters)
22 Sep 25. Rheinmetall Denel Munition highlights major investments during DoD oversight visit. A delegation from the Department of Defence (DoD) Denel Oversight Unit, led by Chief Director Operations Weekend Bangane, and Chief Director Finance Vuyo Hlatshwayo, last week visited the Rheinmetall Denel Munition (RDM) Somerset West Site as part of their oversight responsibilities. The visit, to evaluate and strengthen the partnership, provided both RDM and the DoD with an opportunity for a formal introduction, following the proclamation of the move of the Denel Oversight Unit from the Department of Public Enterprise to their line Ministry, the Department of Defence, RDM said.
RDM’s Chief Financial Officer, Ingrid Stoltz, welcomed the delegation and provided an overview of the company’s recent investments. These include an annual R1bn investment in upgrading and expanding operations at its four manufacturing sites in Somerset West, Wellington, Boksburg, and Boskop (this figure excludes plant maintenance). RDM also highlighted its R85 m investment in skills development and bursaries, alongside its commitment to supporting military veterans.
Last year RDM CEO Dr Frank Dirksen said the company has plans to invest significant amounts into the expansion of mainly 155 mm artillery ammunition in South Africa. He said RDM is on track to more than double its existing capacity over the next two to four years. In July, RDM announced the largest order in its history. Sweden ordered R7.3 bn worth of 155 mm artillery rounds for delivery between 2025 and 2027. The record order comes on the back of a major 155 mm ammunition order for a customer worth tens of ms of euros that was announced at the beginning of June. The company reiterated its ongoing support for South African local suppliers, including SMEs (Small and Medium-sized Enterprises), with spending set to exceed R4 bn in 2025. RDM also shared its investment in cutting-edge technology development, including the LongClaw guided warhead and the 120 mm Rocket Assisted Mortar Ammunition with a 15 km range. RDM reaffirmed its commitment to the South African National Defence Force (SANDF), showcasing key initiatives such as the integration of the Assegai family of 155 mm projectiles onto the SANDF’s G5/G6 45 calibre howitzers, and its readiness for a full-scale infantry mortar bomb refurbishment programme in support of the SANDF. The Denel Oversight was also keen on monitoring the trend in the company’s performance since the establishment of Rheinmetall Denel Munition, RDM added.
RDM is a joint venture between the German defence systems group Rheinmetall and the local state owned enterprise, Denel. Rheinmetall owns 51 percent and Denel, 49 percent of the joint venture.
The joint venture was launched in 2008, when Rheinmetall took over a number of Denel’s large and medium-calibre ammunition plants. In South Africa, RDM specialises in the production of 155 mm artillery ammunition, the NATO standard, but also produces mortar and infantry systems, including 40 mm ammunition, propellants, rocket motors and subsystems for missiles. Another of the company’s product areas is the provision of minefield breaching equipment for demining.
RDM employs around 2 500, but it also has 1 500 Tier 1 suppliers, who produce a final product for the company. Assuming its own employees and those of its Tier one suppliers support five people, RDM’s activities could be supporting up to 250 000 people to varying extents. (Source: https://www.defenceweb.co.za/)
20 Sep 25. Questions relating to a Press Release on 155mm. On 12 September 2025 Defense News reported that Polska Grupa Zbrojeniowa (PGZ) and BAE Systems have entered into a strategic partnership to establish a new 155mm artillery ammunition manufacturing facility in Poland, aimed at increasing the nation’s production of battlefield ammunition
It went to say: BAE Systems will transfer technology and know-how to PGZ, increasing Poland’s production capabilities and helping to bolster NATO’s eastern flank. The munitions factory will use BAE Systems’ manufacturing technology and feature the same automated technology that will deliver a sixteen-fold increase in production capacity of 155mm artillery shells at its facilities in the UK.
The piece then claimed: BAE Systems’ 155mm shells are NATO compliant, compatible with Poland’s military platforms and interoperable with other standard combinations of charge, fuse and primers.
This is all impressive stuff, however it does raise some questions. First of all some context:
- The UK has donated its AS90 Self Propelled Howitzers to Ukraine. It has acquired 14 Archer Systems from Sweden. It has agreed to acquire the RCH 155 system along with journey. The number of RCH 155 to be procured by UK is not known. The system is not qualified, however it is due to enter service at some point around the end of this decade.
- The RCH 155 weapon is the 52 calibre ordnance as designed and produced by Rheinmetall to be carried on the Boxer drive module.
- The UK suite of 155mm ammunition, which was used in conjunction with the AS90 39 calibre weapon,(the FH70 familiy), has been deemed previously to be not fully compatible with 52 calibre weapons.
- Poland has the 52 calibre Krab weapon and the 52 calibre K9 from Hanwha. To date Poland has taken delivery of 192 K9A1 Self Propelled Howitzers. Army Recognition reports:
Poland’s deal with Hanwha Aerospace originally included the acquisition of 212 K9A1s with options for local K9PL production.
- In 2023 BAE Systems confirmed the purchase of 155mm Bi Modular Charges from Hanwha, when BAE said:
“Our order for the supply of modular charge systems demonstrates the compatibility of the Hanwha Aerospace MCS system with our 155mm ammunition.”
Some questions:
- Given that the UK does not have a 155mm Capability beyond the 14 Archer systems; are we to assume that 155mm ammunition production in UK is for Ukraine?
- What ammunition design will be the subject of the PGZ / BAE cooperation?
- What ammunition design will be used with the RCH 155 system?
- What are the figures behind the sixteen fold increase in production capacity? For instance where are the fuzes coming from?
- Are the Hanwha charges for Archer, Ukraine, or RCH 155?
- Is the FH70 family of ammunition now fully 52 calibre compatible?
There is probably a simple response to each of these questions. However this admittedly positive media announcement around 155mm appears to show a lack coherence, and does not immediately demonstrate alignment with other developments across Europe. If we assume that industrial capability is a vital part of military capability then deterrence would be enhanced by the coherent presentation of that industrial capability. (Source: Paul Hough/Alterius Rei/Substack)