“Brand’ in the defense industry? As Europe struggles to supply Ukraine with ammunition, German giant Rheinmetall is investing for the long term, building a new artillery shell plant with ambitions to increase output tenfold.

At the country’s largest defense industry complex in Uderlis, northern Germany, Chancellor Olaf Solz laid the foundation stone of the future unit on Monday.

Planning

From 2025, it is expected to produce ammunition for 155 mm guns; the aim is to progressively reach 200,000 rounds a year.

According to the chancellor, this is a “signal” to the Europeans, who are called to strengthen the defense industrial base of the old continent, emphasizing grouped orders, especially long-term ones.

“We must (…) turn to the production of weapons on a large scale,” insisted Mr. Soltz.

Despite the billions of euros allocated to deliver arms from EU countries to Ukraine after Russia’s military invaded its territory, member states are still far from reaching a production capacity sufficient to sustain it over time and replenish their stocks.

It is an “urgent need. As harsh as this reality may be, we do not live in a time of peace,” emphasized Chancellor Soltz, who once again denounced what he considered the “imperial ambitions” of Russian President Vladimir Putin, calling them a “major threat.”

Given this situation, “anyone who wants peace must manage to deter potential aggressors,” the chancellor ruled.

For this there must be “closer” industrial cooperation of the 27, he continued.

“A strong defense requires a solid industrial base. This will happen if we, the Europeans, consolidate our orders, if we consolidate our means and give the industry prospects for the next 10, 20 or 30 years.”

For a long time, Germany has been an example to avoid, Mr Scholz acknowledged, as its equipment policy was done “as if it were buying a car”, while the defense industry needs long-term planning to invest in new production capabilities.

“If I want to buy a Golf every two or three years, I know there will be stock,” he said of Volkswagen’s popular hatchback, continuing the car analogy. But “tanks, howitzers, helicopters and air or anti-aircraft systems are off the shelf” and need guaranteed orders from states.

Rheinmetall wants to produce at its European plants up to 700,000 artillery shells annually by 2025, up from 400 to 500,000 this year. Before the Russian invasion of Ukraine, its production amounted to only 70,000 annually.

Up to 3 million shells

Germany’s largest defense equipment group “already has a capacity higher than that of the US” when it comes to producing 155mm shells, its chief Armin Papperger told AFP.

In the future, “the US wants to produce 1 million shells a year and Europe two to three million, thanks to the unity of the European partners,” he added.

By the end of March, the Europeans will be able to deliver only about half of the 1 million shells promised to Ukraine last year.

Rheinmetall’s Unterliss complex already produces 120mm shells for Leopard 2 tanks used on the frontlines in Ukraine. From 60,000 pieces a year before 2022, their production now amounts to 240,000.

As they fire thousands of rounds every day, Ukrainian troops have very high and urgent ammunition needs to repel the Russian invasion, experts say.

The armies of the European countries are also called upon to make up for their own deficiencies. After years of underinvestment or disinvestment, German military stocks are nearly empty. In order to meet its ammunition needs, an expenditure of around 40 billion euros will be required, Rheinmetall estimates.

Addressing EU foreign policy chief Giuseppe Borrell during his visit to Ukraine last week, Foreign Minister Dmytro Kuleba urged the creation of a true “single market” in the field of defense in the EU. But the 27 is still a long way off.