Rheinmetall chief says Europe must catch up with Russia's ammunition output as it opens mega plant

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Workers are seen astatine the caller Rheinmetall artillery munitions mill during its inauguration connected August 27, 2025 successful Unterluess, Germany. Germany is investing heavy to modernize the Bundeswehr, its equipped forces.

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Rheinmetall's newly-opened mill successful Northern Germany — acceptable to go Europe's biggest ammunition accumulation installation — is different measurement successful the region's contention to drawback up with Russian output, according to the company's main executive.

CEO Armin Papperger connected Wednesday told CNBC that Russia had the capableness to enactment retired 4 to 5 cardinal artillery ammunition rounds a year. Comparatively, helium said Europe has a yearly output of astir 2 million, much than fractional of which is produced by Rheinmetall.

The European Union has been supporting Ukraine successful its subject effort to combat Russia's invasion, amid uncertainty implicit the U.S.' semipermanent plans to backmost Kyiv.

Europe's "biggest request is artillery ammunition and missiles," Papperger said, stressing the caller works successful Unterluess volition absorption connected some items. The plant's output is expected to scope 350,000 artillery shells a twelvemonth by 2027.

"We bash our utmost, we bash immoderate we tin bash to beryllium fast. I had a chat earlier with [German Defense Minister Boris] Boris Pistorius astir that, helium said, hurry up. We person to bash more," Papperger told CNBC's Annette Weisbach.

Israeli service  soldiers thrust   successful  the turret of a Merkava conflict  tank.

Along with different European countries and NATO members, Germany has pledged to ramp up defence spending and grow its subject successful the coming decennary — successful Berlin's case, enabled by reforms earlier this twelvemonth to its indebtedness rules. It has specifically committed to much than treble its defence spending to 153 cardinal euros ($178 billion) by 2029. Some analysts accidental Germany has more fiscal headroom to present connected those promises than bash the governments of France, Italy and the U.K.

Papperger told CNBC helium expected caller contracts to travel successful implicit the 4th fourth this twelvemonth and passim the archetypal 4th of 2026, and that it had received down payments from the authorities enabling it to marque caller investments.

"The German authorities is precise just to us," helium said.

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Speaking astatine the plant's opening connected Wednesday, NATO Secretary General Mark Rutte said the mill was acceptable up by Rheinmetall successful a "staggering" timeframe of 14 months.

"This is precisely what we request to guarantee the prosperity and information of our economies and societies crossed Europe and North America, particularly astatine a clip erstwhile we are aggressively being challenged," Rutte said.

The NATO main added that Russia and China were "producing weapons and dense subject instrumentality astatine an unthinkable rate" and with "little transparency."

"Now we request to spot akin efforts to summation the accumulation of much analyzable capabilities, similar tanks and aerial defence systems and missiles," Rutte said.

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