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Rheinmetall to build automotive and defence hybrid plant in Hungary

German arms manufacturer Rheinmetall has announced construction of a new automotive and defence plant in southern Hungary.

German arms manufacturer Rheinmetall has announced construction of a new automotive and defence plant in southern Hungary.

Representatives attended an official groundbreaking ceremony at the new hybrid plant in Szeged, according to a statement published by the company earlier this week.

The site will primarily manufacture automotive products such as electrical components, nanostructure capacitors, and products using hydrogen in mobility and energy generation. The location is also intended to manufacture military products in the area of electronic solutions.

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The new plant, scheduled to go into operation at the end of 2025, is Rheinmetall’s first major hybrid site, bringing together civil and military technology activities in one location.

Hungarian Defence Minister Kristóf Szalay-Bobrovniczky, who attended the ceremony, said Hungary welcomes Rheinmetall’s decision to establish the plant in Szeged.

“With this investment, which includes the creation of 300 new high value-added jobs, a world-class ecosystem and knowledge base will be established with the participation of city and regional universities and vocational training institutions,” said Szalay-Bobrovniczky.

“This means that Hungarian experts and engineers will be able to participate in one of the most important research and development projects in Europe.”

The ceremony was also attended by Rheinmetall Power Systems division head Christoph Müller, Dr. László Botka, mayor of Szeged, and other representatives from politics, authorities and industry.

Rheinmetall has also announced plans to increase production of the 155mm artillery ammunition in Europe, under a recent European Union funding program.

The program will support projects in Germany, Hungary, Romania and Spain, with grant agreements expected to be signed in May this year.

“We are grateful that the European Union has placed its trust in us as one of the most important European suppliers of 155mm ammunition, to significantly consider us in its funding program”, according to Rheinmetall AG chief executive officer Armin Papperger.

“The great importance of artillery is evident from the Ukraine’s battle to defend its country.

“The European armed forces also need to replenish their stocks of artillery ammunition. We are ready for this and we are already working on it.”

Rheinmetall has been increasing its production capacities since 2022 and the company aims at producing up to 1.1 million artillery shells per year by 2027. In addition, up to 1.5 million propellant modules and 3,000 tonnes of RDX explosives are to be produced annually starting in 2026.

Further tenders are expected with future European Union plans expected to promote the expansion of production capacities for other defence products, according to the company.

Robert Dougherty

Robert Dougherty

Robert is a senior journalist who has previously worked for Seven West Media in Western Australia, as well as Fairfax Media and Australian Community Media in New South Wales. He has produced national headlines, photography and videography of emergency services, business, community, defence and government news across Australia. Robert graduated with a Bachelor of Arts, Majoring in Public Relations and Journalism at Curtin University, attended student exchange program with Fudan University and holds Tier 1 General Advice certification for Kaplan Professional. Reach out via email at This email address is being protected from spambots. You need JavaScript enabled to view it. or via LinkedIn.
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