Rheinmetall has begun construction of one of Europe’s largest and most modern powder production facilities at its Aschau am Inn site, significantly expanding ammunition manufacturing capacity. Led by its subsidiary Nitrochemie Aschau, the project will increase output to over one million propellant charge modules annually and strengthen supply chain resilience in Germany and across Europe.
The foundation-laying ceremony on July 23, 2026, was attended by senior officials including Bavarian Minister-President Dr. Markus Söder, Parliamentary State Secretary at the Federal Ministry of Defence Dr. Nils Schmid, and Bavarian Minister of Economic Affairs Dr. Hubert Aiwanger, highlighting the project’s strategic importance.
The Aschau site will expand from 90 to approximately 110 hectares, supported by an investment of several hundred million euros. Rheinmetall is investing around €650 million overall in propellant powder production, with €350 million allocated to Aschau. The workforce, which has already grown by about 80% since 2022 to over 800 employees, is expected to reach around 1,400 with several hundred new jobs.
Production at the new facility is set to begin in 2027, with full capacity expected by 2028. Current annual output of 1,700 tonnes of powder and 300,000 propellant charge modules will more than double over the next two years, adding approximately 2,500 tonnes of powder, over five million combustible components, and more than one million modular propellant charge modules.
“Security and defence capability are the prerequisites for freedom: the laying of the foundation stone for the plant expansion of Rheinmetall’s subsidiary Nitrochemie in Aschau am Inn is a good day for security,” said Minister-President Dr. Markus Söder. “Rheinmetall is investing €500 million in Europe’s largest and most modern powder factory. This makes a decisive contribution to resilience and autonomy in the defence sector and creates 500 new, secure jobs in the region. This benefits Germany, the EU and NATO. After all, only those who can defend themselves will not be attacked. In Bavaria, security and defence are a priority – a third of Germany’s defence technology companies are based in the Free State. With our own Defence Industry Act, we are ensuring that defence companies are given priority. Just as with the Bundeswehr Act, we are pioneers throughout Germany!”
“Expanding production capacity in Germany, particularly for ammunition, is a security necessity and is also of the utmost importance to our partners,” stated Parliamentary State Secretary Dr. Nils Schmid. “I am therefore grateful that the security and defence industry is making efforts at all levels to make supply chains more resilient. The results are truly impressive. The new facility here in Aschau is a response to the urgent demand for ammunition in Germany and across Europe. The additional production capacity will, overall, enhanc e Germany’s and Europe’s strategic autonomy. It demonstrates that democratic states are prepared to take responsibility and stand up for one another. On behalf of the Federal Government, we wish you a swift construction process and every success with this important contribution to the defence of Germany and Europe.”
“Since its foundation, Rheinmetall has been a competence centre for weapons and ammunition systems,” added Armin Papperger, CEO of Rheinmetall AG. “We are one of the few manufacturers in the ammunition sector to cover the entire value chain, from propellant charges and primers to fuzes and shell bodies, as well as explosive and active charges. None of these components shall be a bottleneck. This is particularly important when it comes to propellant, as there are only a few manufacturers worldwide. Self-sufficiency is therefore crucial. The Aschau site will thus make a decisive contribution to the national sovereignty and credible defence capability of Germany and Europe.”
The site will manage the entire value chain for propellant charges in one location, supporting Rheinmetall’s broader Project Firepower initiative to expand production capacity to 20,000 tonnes annually by 2030 and meet growing demand from Germany, NATO, and the European Union.
