Ceremonial handover in Hungary: Rheinmetall takes over ammunition factory in Várpalota, Hungary, after completion

The ceremony took place in presence of the Hungarian Minister of Defence Kristóf Szalay-Bobrovniczky and the CEO of Rheinmetall AG, Armin Papperger.

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. Furthermore, ammunition for battle tanks and artillery as well as igniters will be among the products manufactured in Várpalota in a second phase. In the final expansion stage, the company site will cover a total of around 150 hectares.

In his opening speech, 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.”

In his address, 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 partnerships.