At the ceremonial inauguration of the medium-calibre ammunition factory of the Várpalota Defence Industrial Complex on Monday Minister of Defence Kristóf Szalay-Bobrovniczky described the expanding munitions manufacturing facility as a crown jewel of the Hungarian defence industry which will enable Hungary to become self-sufficient in 30-millimetre ammunition the mathematics of war has been one of the most important aspects of warfare; its laws cannot be ignored,’ Minister Szalay-Bobrovniczky asserted before the test run of the production line specialized in 30-millimetre ammunition He remarked that the ongoing Russo–Ukrainian war has demonstrated the critical importance of having all necessary equipment available for combat ‘High technology is indispensable but insufficient for successful combat having ammunition ensures success,’ he summarized The Minister emphasized that Europe has recognized the need to rebuild its entire defence industrial capabilities with a particular focus on ammunition production ‘Not only the warring parties suffer from the constant need for replenishing ammunition supplies but also the countries donating to the Ukrainian side among which Hungary is not included,’ he stressed it is a clear political decision that Hungary does not send ammunition or weapons to the ongoing war in the neighbouring country He reminded that strategic ammunition reserves have significantly dwindled across the old continent and the European defence industry market is struggling to keep up with the situation ‘Hungary is not only at the forefront but ahead of our European Union friends in having planned a complex of this size—based on a well-thought-out strategy—well before the outbreak of the war He stated that a defence industry is being developed in Hungary with factories that are not only built but also producing and significantly reduce our country’s military dependence on supply chains,’ he explained The minister pointed out that Hungary has already achieved the two per cent GDP defence spending level required by NATO for its member states last year. Szalay-Bobrovniczky recalled that less than a week ago he formally took delivery of the Hungarian Defence Forces’ first domestically manufactured Lynx KF-41 infantry fighting vehicle produced at Rheinmetall’s factory in Zalaegerszeg The Minister explained that the relationship with Rheinmetall is seen as fair mobilizing significant economic resources for both Hungarian and German strategic partners Ahead of Europe – new #Hungarian munitions factory strengthens our defence 🟥⬜️🟩🛡️ Ensuring self-sufficiency in 30mm ammo for our Hungarian-made #LYNX IFVs the Várpalota Defence Industrial Complex #boosts security and creates jobs 🇭🇺 #Defenceindustry #MinistryOfDefense pic.twitter.com/00h0oFtYGm Szalay-Bobrovniczky stressed that the 30-millimetre machine gun ammunition produced in the newly inaugurated plant could even be called ‘lynx feed,’ as it is the ammunition for the turret machine guns of the Lynx infantry fighting vehicles and it is a key ammunition type in the armaments of several NATO member states Hungary will become self-sufficient in this type of ammunition noting that the plant initially provides jobs for fifty people with several hundred more employed once production commences CEO of German defence industry group Rheinmetall expressed gratitude for the support of the Hungarian government and praised the designers of the factory buildings and the contractors for their quality and speedy work He stated that the German defence company would cooperate not only in manufacturing but also in utilizing the ammunition produced for sales with the Hungarian state ‘There is indeed a significant demand for not only medium but also larger calibre ammunition which we also plan to produce,’ he declared the plant’s capacity and productivity will significantly increase in the near future thereby strengthening Hungary’s national sovereignty In her speech Várpalota Mayor Márta Campanari-Talabér recalled that a year and a half ago a drone placed the foundation stone of the now inaugurated ammunition factory ‘It is almost unbelievable that eighteen months later we can already be part of the inauguration ceremony and I reaffirm today: Várpalota is committed to the defence industry,’ she added The mayor emphasized that the defence of Hungary is not possible without a defence industry of which Várpalota is one of the most important pillars ‘The city’s Sleeping Beauty-like economy needed to be awakened,’ she stated the Hungarian government is providing 24 billion forints in state support for infrastructure developments which will also include adjustments to the vocational training profile of the local secondary school and the implementation of utility and road development ‘We are working so that many people feel locally that they are the beneficiaries of this investment,’ she added Hungarian Conservative is a quarterly magazine on contemporary political philosophical and cultural issues from a conservative perspective the Duesseldorf-based technology group Rheinmetall celebrated the official takeover of its new state-of-the-art 30mm ammunition factory in Várpalota The ceremony took place in presence of the Hungarian Minister of Defence Kristóf Szalay-Bobrovniczky and the CEO of Rheinmetall AG The new production facility in Várpalota is a significant milestone in Rheinmetall’s expansion strategy It underlines the company’s commitment in providing up-to-date technologies to support the defence capabilities of its partners The factory is designed to produce 30mm ammunition for the KF41 Lynx infantry fighting vehicle (IFV) which will be built in Zalaegerszeg and delivered to the Hungarian armed forces The Várpalota factory will start production in October 2024 ammunition for battle tanks and artillery as well as igniters will be among the products manufactured in Várpalota in a second phase the company site will cover a total of around 150 hectares Published: December 2022 - Pages: 161 pages Armin Papperger highlighted the importance of the new factory for Rheinmetall and the site in Hungary: “The opening of this state-of-the-art ammunition factory in Várpalota is a clear signal to our commitment concerning innovation and quality This facility will not only strengthen the defence capabilities of our global partners and in Hungary but will also contribute to the economic development of the region.” Hungarian Defence Minister Szalay-Bobrovniczky emphasised the strategic importance of the cooperation with Rheinmetall and stressed the joint efforts in strengthening the national security and defence industry The new factory in Várpalota is equipped with the latest technology and will create more than 200 jobs in the region making an important contribution to the local economy The establishment of the Lynx IFV and other Lynx models also strengthens the development of the Hungarian defence industry Rheinmetall is thus continuing its tradition of contributing to global security through technological innovation and close 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Attack Drones Ireland - FGM-148 Javelin Missiles and Lightweight Command Launch Units Elevate Your Business with Our Market Studies and LEGO® Magic the Duesseldorf-based technology group Rheinmetall celebrated the official takeover of its new state-of-the-art 30mm ammunition factory in Várpalota The ceremony took place in presence of the Hungarian Minister of Defence Kristóf Szalay-Bobrovniczky and the CEO of Rheinmetall AG The new production facility in Várpalota is a significant milestone in Rheinmetall’s expansion strategy It underlines the company’s commitment in providing up-to-date technologies to support the defence capabilities of its partners The Várpalota factory will start production in October 2024 ammunition for battle tanks and artillery as well as igniters will be among the products manufactured in Várpalota in a second phase Armin Papperger highlighted the importance of the new factory for Rheinmetall and the site in Hungary: “The opening of this state-of-the-art ammunition factory in Várpalota is a clear signal to our commitment concerning innovation and quality but will also contribute to the economic development of the region.” The new factory in Várpalota is equipped with the latest technology and will create more than 200 jobs in the region Cookie Policy Copyright © 2025 Defence Industry Europe | mady by: geekon.eu We use cookies to enhance your browsing experience We use cookies to help you navigate efficiently and perform certain functions You will find detailed information about all cookies under each consent category below The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site We also use third-party cookies that help us analyze how you use this website and provide the content and advertisements that are relevant to you These cookies will only be stored in your browser with your prior consent You can choose to enable or disable some or all of these cookies but disabling some of them may affect your browsing experience Necessary cookies are required to enable the basic features of this site such as providing secure log-in or adjusting your consent preferences These cookies do not store any personally identifiable data Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms Analytical cookies are used to understand how visitors interact with the website These cookies help provide information on metrics such as the number of visitors Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns The Budapest Times Szalay-Bobrovniczky said few ammunition plants in Europe matched the one in Varpalota in quality adding that the plant will also make ammunition for the armoured infantry fighting vehicles manufactured in Zalaegerszeg The plant in Varpalota will guarantee the quality of Hungary’s defence industry as well as the safety of those living in the area Some 50 people will be working at the factory but headcount will increase to several hundred as production ramps up The plant will be expanded with further elements over the coming months and years and will also manufacture 155mm calibre artillery shells in addition to 120mm tank ammunition Szalay-Bobrovniczky said the Russia-Ukraine war had demonstrated that “nothing is as important as having everything needed for battle at our disposal.” “Cutting-edge technology is indispensable there’s also success,” the minister said He said Europe had recognised that it could not remain idle but had to completely rebuild its defence industry capacities The supply of ammunition to Ukraine by European countries had significantly reduced their strategic munitions reserves and the European defence industry could barely keep up with the increased demand Szalay-Bobrovniczky said Hungary was also ahead of “its European Union friends and allies” arguing that the plans for the Varpalota plant had been completed well before the start of the war and construction had gotten under way quickly had resulted in the emergence of a defence industry in Hungary in the form of factories employing “a Hungarian workforce with high-tech knowledge” which greatly reduced the country’s military dependence Rheinmetall’s chairman and chief executive said the company was planning to export not just medium calibre ammunition He said the Varpalota plant is capable of producing more than 240,000 rounds of tank ammunition a year He said the 30mm calibre ammunition plant was a 300 million euro investment but Rheinmetall is investing a total of half a billion euros in Varpalota through a German-Hungarian joint venture as it will have to 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Design: GoOG Webdevelopment: diVid Forgot your password? You will receive mail with link to set new password Back to login The new Rheinmetall ammunition plant in Várpalota currently being built by the Hungarian holding company N7 on behalf of the joint venture company Rheinmetall Hungary Munitions Zrt. The second phase of construction started in January 2024 The concept for a multi-phase expansion of the plant existed prior to February 2022 and the Russian invasion of Ukraine The project constitutes a strategic Hungarian investment in cooperation with Rheinmetall in response to the shortfall in ammunition already apparent at the time given the anticipated increase in demand in Europe and NATO it has the added aim of reducing Europe’s dependence on overseas imports the foundation stone was laid in Várpalota for the first part of the new Rheinmetall plant where the joint venture company Rheinmetall Hungary Munitions Zrt will in future produce ammunition for various systems The first expansion phase of the plant will enable production of 30mm medium-calibre ammunition for the Lynx infantry fighting vehicles which will be built by Rheinmetall at its new tank plant in Zalaegerszeg the “Várpalota 2.0” expansion will increase the size of the plant by 20 hectares to approximately 120 hectares The number of employees will grow to up to a total of 200 the product range will expand to include new types of ammunition principally 155mm artillery shells for the PzH 2000 self-propelled howitzer and 120mm ammunition for the Leopard 2 main battle tank and its potential follower Production is slated to begin in early 2026 Rheinmetall also plans to carry out development and acceptance testing at Várpalota Part of this strategic expansion of capacity for the production of ammunition in Hungary is also an additional plant for the production of explosives (RDX) which is being built in parallel on the same site and also in a joint venture between Reinmetall and N7 This will also make a major contribution to ensuring the security of supply of this elementary raw material for ammunition production in Europe Part of the Várpalota’s output will meet the needs of the Hungarian armed forces In addition to the newly built plant operated by Rheinmetall Hungary Munitions Zrt. today Rheinmetall already produces ammunition in Germany Contact us Please enable JS and disable any ad blocker This work, Know Your Defender: Pfc. Anthony DeLaTorre, U.S. Army, by SSG Margaret Gabriel, identified by DVIDS, must comply with the restrictions shown on https://www.dvidshub.net/about/copyright The Hungarian state is building a new explosives plant to produce RDX (Research Department eXplosive) at its site in Várpalota Rheinmetall Denel Munition Pty (Ltd) from South Africa is supplying the necessary plant technology Under the contract signed on 15 December 2022 a new plant will be built and operated by a joint venture consisting of Rheinmetall and N7 Holding The contract is worth a figure in the low three-digit million-euro range The explosives produced in the new plant can be used for artillery The contract covers the supply of plant engineering and process know-how as well as the associated documentation 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 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 The foundation stone has been laid for the new Rheinmetall plant in Várpalota where ammunition for various systems will be produced by the joint venture Rheinmetall Hungary Munitions in cooperation with the Hungarian state Production of 30mm-medium-calibre ammunition for the Lynx infantry fighting vehicle now being manufactured at the Rheinmetall plant in Zalaegerszeg is scheduled to start in 2024 production capacity will be expanded and the product range widened to include other ammunition types A longstanding strategic partner of Hungary Rheinmetall AG will then be able to produce ammunition for the Leopard 2 tank and PzH 2000 self-propelled howitzer at the Várpalota plant Both of these systems are used by the Hungarian Army Part of the production is earmarked for the Hungarian armed forces Full production capacity will be reached in 2025 Rheinmetall also plans to conduct R&D in Várpalota The Group is thus systematically expanding its ammunition production capacity It recently announced the acquisition of Spanish ammunition maker Expal which will double its manufacturing capacity in this domain Rheinmetall also produces ammunition in Germany Rheinmetall is an important partner of Hungary helping the country to achieve its strategic goals and develop its national defence industry Rheinmetall will be able to meet Hungary’s future ammunition needs as well as the growing demand for ammunition from Germany's other partner countries In addition to capital expenditure in Várpalota Rheinmetall has been investing in extra production capacity and a development centre in Zalaegerszeg where vehicle systems like the Lynx infantry fighting vehicle are being developed and produced Rheinmetall announced in May 2022 that it would set up a joint venture with the 4iG Plc and the Hungarian state-owned company HM Electronics Logistics and Property Management Plc (HM EI Zrt.) to drive forward the digitalisation of the Hungarian armed forces and selected NATO member states Rheinmetall thus continues to expand its position in Hungary as a capable partner of the Hungarian armed forces The core objective of the cooperation is to promote digitalisation of the Hungarian armed forces and other NATO countries in Central and Eastern Europe and to develop and supply the necessary digital equipment the factory in Várpalota will employ about 200 people More workers will be needed as the plant grows "We need employees in our team with experience in production We are also specifically looking for professionals who are trained and experienced in handling explosives and ammunition” This work, Ambassador to Hungary visits Comanche Troop, by SGT Jacob Hester-Heard, identified by DVIDS, must comply with the restrictions shown on https://www.dvidshub.net/about/copyright In the ammunition factory in Várpalota the capacity is being expanded from medium-caliber ammunition to large-caliber ammunition The construction of the ammunition factory for the joint venture Rheinmetall Hungary Munitions Zrt which is currently under the responsibility of the Hungarian N7 Holding The second phase for large-caliber ammunition has now started Rheinmetall sees the project as a strategic investment to counter the shortage of ammunition that was already foreseeable before the start of the Russian war against Ukraine against the background of the expected demand in Europe and NATO in December 2022 the foundation stone was laid in Várpalota for the first parts of the new Rheinmetall plant in which the joint venture Rheinmetall Hungary Munitions Zrt will produce ammunition for various systems in the future the plant will be capable of producing 30mm medium-caliber ammunition which will in future also be used by the Lynx infantry fighting vehicles manufactured by Rheinmetall in Zalaegerszeg Part of this strategic capacity expansion for the production of ammunition in Hungary is also an additional factory for the production of explosives (RDX), which is being built in parallel on the same site and also in a joint venture between Reinmetall and N7 (ESuTreported) This means that Hungary is also making a major contribution to the security of supply of this fundamental raw material for ammunition production in Europe Part of the production in Várpalota is intended for the needs of the Hungarian armed forces the international market is also to be supplied In addition to the newly built Rheinmetall Hungary Munitions Zrt plant Rheinmetall already produces ammunition in Germany Rheinmetall CEO Armin Papperger estimated the company's capacity for 155mm ammunition at 350,000 rounds (full shots) and announced an increase to 700,000 rounds by 2025 This means that – even taking into account the capacities of other companies in Europe and America – the demand – which has currently risen sharply due to high consumption in Ukraine – cannot be met Consumption in Ukraine alone is estimated at at least around 5,000 rounds of 155mm ammunition per day This results in an annual requirement of around two million shots there is the need of nations to replenish their own ammunition stocks If you have any questions about your subscription to “European Security & Technology” “European Security & Defence” “MarineForum” or “Mittler-Brief”