Europe builds 7 million m2 of new military plants: a sharp increase in production after the war in Ukraine

The large-scale re-equipment of Europe's defenses is taking tangible forms. According to the Financial Times, the area of new and expanding military production facilities in Europe has reached 7 million square meters, which is three times more than before the outbreak of the war in Ukraine. These conclusions are based on the analysis of more than a thousand satellite images provided by the European Space Agency (ESA), which cover the activities of 37 defense concerns.

The growth driver was the European Union's ASAP (Act in Support of Ammunition Production) initiative, launched to increase production of ammunition and missiles in response to the depletion of NATO stocks. The program has already had a significant effect: at 88 key sites, the building area has grown from 790,000 m2 in 2020-2021 to 2.8 million m2 in 2024-2025.

The largest projects:

 Hungary: Rheinmetall, together with N7 Holding, is building a large-scale factory that will produce 1.1 million 155 mm shells per year by 2027, compared with 70,000 in 2022. It will become one of the largest artillery production facilities in Europe.

- Norway: Kongsberg has opened a new factory for the production of missiles, including anti-ship and anti-aircraft systems.

- Finland: Nammo expands facilities at the Vihtavuori test site to increase production of ammunition and solid-fuel engines.

- United Kingdom: BAE Systems has increased production of 155 mm shells 16 times in recent years.

The European Commission is preparing a new program designed to complement ASAP and stimulate the production of not only ammunition, but also missiles, drones, and air and missile defense systems. This is necessary to restore strategic reserves and ensure the long-term sustainability of Europe's defense.

This industrial renewal marks a fundamental shift: Europe is moving from decades of cutting military spending to a strategy of mass and sustainable weapons production, preparing for possible future crises.

Rheinmetall's South African division receives record order for artillery from NATO

 

Rheinmetall Denel Munition (RDM), a South African joint venture between German Rheinmetall and South African Denel, has received the largest order in its history for Assegai 155 mm artillery shells and propellant charges. The contract was signed in the second quarter of 2025 with an unnamed European member state of NATO. This event was an important step in strengthening the company's position in the international arms market.

According to the terms of the contract, deliveries should begin this year and last until the end of 2027. The volume of the order was not disclosed, but experts note that it is a significant amount, given the scale and duration of the project.

The range of Assegai ammunition produced by RDM includes a wide range of models: high-explosive, practical, low-sensitivity, lighting, infrared, smoke, projectiles with preformed fragments (PFF), as well as extended-range V-LAP projectiles. This diversity makes it possible to meet the different tactical needs of modern armies.

Recall that RDM is part of Rheinmetall's broader strategy to strengthen its presence in South Africa. In June 2025, the company also established a new subsidiary, Rheinmetall Resonant South Africa (Pty) Ltd, which specializes in the design of chemical industries and provides additional opportunities for the development of the defense and civilian sectors.

This agreement highlights the growing role of South Africa as a regional center for the production of high-tech weapons, and also demonstrates the trust of Western countries in products manufactured under international military-technical partnerships.

Rheinmetall and Denel Munition have signed the largest contract for the supply of 155 mm shells to a NATO country

 

The German defense concern Rheinmetall and its subsidiary Denel Munition have signed a multi-year contract for the supply of 155—mm artillery shells to a European NATO member country. The company officially announced this on Thursday, stressing that this order was the largest in the history of Rheinmetall Denel Municipalities.

Basic details of the contract

- Volume and cost: The contract is estimated at several hundred million euros, reflecting the scale and strategic importance of the agreement for both parties.

- Delivery dates: The supply of shells will begin in 2025 and will end with the final batch in 2027.

- Type of ammunition: We are talking about 155-mm artillery shells, which are the standard for modern self-propelled and towed artillery systems of NATO.

- Value for Rheinmetall Denel Munition: This is the largest order in the company's history, which demonstrates the high confidence in the products and production capabilities of the combined company.

The importance of the contract for European security

- Strengthening the defense capability: Large-scale supplies of modern ammunition will significantly increase the combat capability of the artillery units of the recipient country.

- Responding to modern challenges: Amid rising tensions in Europe and the increasing need for ammunition to support operations and resupply, such contracts are becoming critically important for NATO countries.

- Development of industrial cooperation: The agreement demonstrates the successful integration of European and South African defense technologies and production facilities.

Prospects and market impact

- Production growth: Rheinmetall and Denel Munition plan to expand production facilities to ensure timely order fulfillment.

- Long-term cooperation: The contract can become the basis for further agreements on the supply of ammunition and joint developments in the field of artillery systems.

- Impact on the arms market: Large orders of this scale strengthen Rheinmetall's position in the global ammunition market and strengthen the defense independence of European countries.