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The Estonian Centre for Defence Investments // Riigi Kaitseinvesteeringute Keskus has announced the conditions of a five-year tender to find a manufacturer of ammunition at #Ämari military base. Production must begin in 2025. The deadline for submitting bids is October 10, and production must begin no later than the first half of next year. The winner of the tender will gain access to an area of approximately 8,900 square meters in the Ämari military base, including a site, a light hall, protective embankments, and communication facilities, as well as up to seven ammunition storage facilities. The conditions of the tender include leasing the site for up to five years, during which it must be used for the production of ammunition or combat ammunition containing explosives. The winner of the tender must also have the necessary permits for production by the time production begins. The production costs will be borne by the winner of the tender. While the development of the defense industry park by the Ministry of Defense may take a few years due to special national planning and its scale, using the military base provides companies with an opportunity to start ammunition production immediately. "Ämari already has the infrastructure that meets the necessary security and safety requirements, so there's no need to develop it from scratch," the center's Deputy Director Katri Raudsepp said in a statement. Meetings with representatives of the Estonian defense industry have clearly indicated that local defense companies are also interested in expanding their businesses and participating in the tender, she added. In evaluating the bids, the detailed action plan prepared by the company will account for 60 percent of the total score. In addition, the company's turnover (including that of shareholders), the Estonian Defence Forces' need for the product, the contractual coverage of the product, and the usage fee for state property will also be assessed. A six-member committee will evaluate the bids. The document will be published in English on the Estonian Center for Defence Investments' website by Friday, August 23rd, at the latest. https://lnkd.in/dnD3XJpt

Defense concern Rheinmetall has revealed details of its new ammunition plant currently under construction in #Germany. The press service of the concern reported on this. On December 12, German Chancellor Olaf Scholz, Danish Prime Minister Mette Frederiksen and Defense Minister Boris Pistorius, together with Armin Papperger, CEO of Rheinmetall AG, held a symbolic groundbreaking ceremony for the ‘Lower Saxony plant.’ The new Rheinmetall plant, based in #Unterlüß, will have a full production cycle that will include all the necessary steps to produce a “complete shot”: projectile, detonator, explosive charge and metal powder charge. The full cycle involves the creation of a plant for the production of gunpowder and explosives that will be able to produce up to 1800-1900 tons of hexogen, a foundry for the production of artillery shells with a capacity of up to 200 thousand units per year. In addition, a plant for the production of solid rocket engines will be set up. The project presentation stated that it would take a year to build the facility. In about 12 months, the factory will have a capacity of about 50,000 shells per year, in the second year the capacity will be 100,000 shells per year, and in the third year – 200,000 shells per year. Representatives of the concern noted that Rheinmetall adhered to a modular and scalable supply security concept that would allow for further production expansion in future. The concern’s total investment in the new facility is about €300 million. This will create about 500 new jobs locally. Rheinmetall emphasized that new capacities should’ve been created, taking into account the arms market and the experience of the Russian-Ukrainian war. “The experience of the Ukrainian war shows a huge need for artillery ammunition. The Bundeswehr (German Federal Armed Forces)’s warehouses are empty, and their needs are estimated at around €40 billion. The shortage is exacerbated by the huge consumption of ammunition in Ukraine. Existing production facilities in the #Western world are not designed for such volumes. That is why Germany, like other countries, plans to purchase large volumes for a long time,” the concern says. Rheinmetall is a leading manufacturer in the defense sector and one of the largest ammunition producers in the world. In recent months, the company has already made significant investments in its production network. From 2025, Rheinmetall plans to produce up to 700,000 artillery shells and 10,000 tons of gunpowder at its plants in Germany, #Spain, #Hungary, as well as South Africa and #Australia. https://lnkd.in/dv9MhWWf

The US Congress doubled its request for funding to purchase #155mm shells to replace the ammunition supplied to #Ukraine and #Israel. Reuters reported on this. The total value of the allocated funding is reported to be up to $6 billion. “By my math, the supplemental, we asked for about $3.1 billion related to the increase of 155 ammunition units production. We appear to have gotten $6 billion. So that, I think, is a vote of confidence as we make our way to 100,000 shells a month.” Doug Bush, the chief weapons buyer for the Army, said. Bush said the United States plans to increase monthly production of 155mm artillery shells to 100,000 by the summer of 2025. Militarnyi previously reported on the US plans to increase ammunition production back in the fall of 2023, but at the time it was about 80,000 shells per month by the summer of 2025. Increase in ammunition production in Europe Militarnyi previously reported that the French gunpowder and explosives manufacturer Eurenco would increase production of modular propellant charges for artillery to 500,000 units per year. According to the CEO, the company has received orders totaling €1 billion in the last six months alone. The #Lithuanian government and Rheinmetall signed an agreement to build a factory to produce 155mm artillery ammunition. The signed document sets out mutual obligations and intentions to start construction of the joint defense enterprise as soon as possible. Officials have not yet disclosed details about the enterprise’s future and its design capacity. The new facility is part of Rheinmetall’s long-term strategy, which plans to reach a production capacity of more than one million artillery rounds by 2027. On April 10, it was reported that Eurenco is investing €500 million in the production of gunpowder at its plants in Europe. https://lnkd.in/dUP8AWYz

Rheinmetall, Europe’s largest ammunition maker, plans to open a new plant in Ukraine. Rheinmetall and a Ukrainian partner company have signed a memorandum of understanding to set up a joint venture which in future will produce ammunition in Ukraine. The MoU was signed in the presence of Alexander Kamyshin, the Ukrainian Minister for Strategic Industries, during the Munich Security Conference. The "Ukrainian Competence Center for Ammunition" is to produce a six-digit number of 155mm calibre bullets per year in the future, including the corresponding propelling charges. To achieve this, the partners plan to build and jointly operate a new production facility. Rheinmetall will have a 51 percent stake in the new company, with the remaining 49 percent share held by the Ukrainian partner. Just the other day, on 12 February, Chancellor Scholz took part in the ground-breaking ceremony for a new plant at Unterlüß in Lower Saxony which, along with explosives and rocket artillery components, will also produce artillery ammunition starting in 2025. “Demand for ammunition in many countries is enormous – first and foremost in Ukraine, of course. Our intention of establishing another joint venture underscores our support for Ukraine. This joint venture will make a vital contribution to the country’s ability to defend itself – and thus to the security of all Europe”, declares Armin Papperger, chairman of the executive board of Rheinmetall AG. As Mr Papperger puts it, “We want to be an effective partner of Ukraine, to help rebuild the country’s once powerful defence industry, and to assure Ukrainian autonomy in ammunition production. Already today, we are Kyiv’s most important defence industry partner. We are currently processing several billion euros worth of projects on behalf of Ukraine, with more almost daily.” Rheinmetall is not only the world’s largest producer of artillery ammunition and a defence technology leader. It also has the expertise needed to plan, build and operate facilities for producing ammunition. In October 2023 Rheinmetall AG and Ukraine’s state-owned enterprise Ukrainian Defense Industry JSC (UDI, the former Ukroboronprom) established a first joint venture in Kyiv – Rheinmetall Ukrainian Defense Industry LLC. In a first step, the company will maintain and repair combat vehicles; later, armored vehicles will also be built in Ukraine. https://lnkd.in/ea4GG9wY #Rheinmetall #Ukraine #Takingresponsibility

The new Rheinmetall ammunition plant in Várpalota, Hungary, currently being built by the Hungarian holding company N7 on behalf of the joint venture company Rheinmetall Hungary Munitions Zrt., is now poised to expand as planned. The second phase of construction started in January 2024. The concept for a multi-phase expansion of the plant existed prior to February 2022 and the Russian invasion of Ukraine. The project constitutes a strategic Hungarian investment in cooperation with Rheinmetall in response to the shortfall in ammunition already apparent at the time given the anticipated increase in demand in Europe and NATO. Furthermore, it has the added aim of reducing Europe’s dependence on overseas imports. Just one year ago, the foundation stone was laid in Várpalota for the first part of the new Rheinmetall plant, where the joint venture company Rheinmetall Hungary Munitions Zrt. will in future produce ammunition for various systems. The first expansion phase of the plant will enable production of 30mm medium-calibre ammunition for the Lynx infantry fighting vehicles which will be built by Rheinmetall at its new tank plant in Zalaegerszeg, Hungary. Production starts in 2024. Now set to begin, the “Várpalota 2.0” expansion will increase the size of the plant by 20 hectares to approximately 120 hectares. The number of employees will grow to up to a total of 200. In addition, the product range will expand to include new types of ammunition, principally 155mm artillery shells for the PzH 2000 self-propelled howitzer and 120mm ammunition for the Leopard 2 main battle tank and its potential follower, the Panther KF51 EVO. Production is slated to begin in early 2026. Furthermore, Rheinmetall also plans to carry out development and acceptance testing at Várpalota. Part of this strategic expansion of capacity for the production of ammunition in Hungary is also an additional plant for the production of explosives (RDX), which is being built in parallel on the same site and also in a joint venture between Reinmetall and N7. This will also make a major contribution to ensuring the security of supply of this elementary raw material for ammunition production in Europe. Part of the Várpalota’s output will meet the needs of the Hungarian armed forces, with the rest destined for export. In addition to the newly built plant operated by Rheinmetall Hungary Munitions Zrt., today Rheinmetall already produces ammunition in Germany, Spain, Switzerland, Austria, Italy, South Africa, Australia and the United States. https://lnkd.in/eR3jmTFm #Rheinmetall #RheinmetallHungary

The Estonian Centre for Defence Investments // Riigi Kaitseinvesteeringute Keskus (RKIK) will initiate a selection process in the coming weeks to find a defense industry company to establish production facilities at #Ämari Air Base. The goal is for this facility to begin operations by early next year. The development of a major defense industry park near #Pärnu is underway but is expected to take longer due to the state's special planning process. To expedite the production of defense materials, RKIK is offering a defense industry company the opportunity to set up production at Ämari Air Base, aiming to start munitions manufacturing by early 2025, according to RKIK Deputy Director Katri Raudsepp. A 6,200-square-meter area equipped with protective embankments at Ämari is available for the company, meeting security and safety requirements, Raudsepp said. The company will be responsible for building the necessary production facilities at its own expense. A selection process will be announced in the coming weeks for companies interested and qualified for this opportunity. The criteria include having the necessary licenses, a business plan and compliance with the Weapons Act. The company's operations should support the development of Estonia's defense capabilities, be based on market economy principles and focus on exports, Raudsepp explained during a press briefing. Companies must submit an activity plan, which will be evaluated based on how well they support the security plans of Estonia, NATO and #Ukraine. However, Raudsepp emphasized that the selected company will not be guaranteed defense contracts and will have to compete with other bidders. Tambet Tõnisson, head of RKIK's state property sector, added that the company must comply with the requirements of the Weapons Act and possess a permit for handling explosives. The site allows for handling up to 400 kilograms of explosives at a time. The plot will be leased to the company for five years, with access to storage facilities on military grounds. Raudsepp noted that RKIK does not restrict the type of company or the products to be manufactured at Ämari. Interest has been expressed by multiple companies, ranging from those producing charges to ammunition and air-to-ground munitions. Tõnisson described the Ämari mini-defense industrial park as a pilot project to explore the feasibility of munitions manufacturing in Estonia, providing valuable experience for developing a larger defense industry park. The planning for the larger park is expected to conclude by August next year, after which construction could begin, potentially reaching production within one and a half years, optimistically by the end of 2026. https://lnkd.in/dibSMKhK

Northrop Grumman will set up ammunition production in #Ukraine. Breaking Defense reported that Dave Bartell, director of international business for Northrop’s defense systems sector, stated this at the Eurosatory defense exhibition. Northrop’s coproduction agreement is the first publicly acknowledged deal between a #US defense prime and the Ukrainian government for a manufacturing project inside Ukraine. “That’s our first project that’s paid for with Ukrainian dollars. We are looking to expand that into tank ammo, 155 mm, and others as we find innovative processes,” Dave Bartell, director of international business for Northrop’s defense systems sector, shared. The acknowledgment of the agreement occurred during an exchange between Bartell and Stanley Brown, the U.S. Department of State’s principal deputy assistant secretary for the bureau of political-military affairs, during Brown’s speech at the Eurosatory arms show in Paris. Bartell did not elaborate on the coproduction plan, and Northrop declined to comment for this story. In his remarks, Brown highlighted the State Department’s new Ukraine Defense Enterprise Program, which invests $2 billion in Ukraine’s defense industrial base and could open the door to US-Ukrainian coproduction. Previous U.S. co-production efforts to support Ukraine’s needs have typically focused on efforts to produce U.S. weapons within NATO allies in Eastern Europe. In recent months, however, the U.S. government has stepped up its efforts to cooperate directly with Ukraine’s defense sector. The #American military-industrial company Northrop Grumman Corporation is considered one of the world’s largest arms manufacturers and suppliers of military technology. The company also operates in the electronics, information technology, shipbuilding, and aerospace industries. In 2023, the United States signed a $522 million contract with Northrop Grumman to manufacture ammunition for Ukraine. https://lnkd.in/d44XhhJx

In a warehouse off Lyndon B. Johnson Freeway in an industrial area outside #Dallas, the future of #American military ammunition production is coming online. Here, in the Pentagon’s first new major arms plant built since Russia invaded #Ukraine, #Turkish workers in orange hard hats are busy unpacking wood crates stenciled with the name Repkon, a defense company based in Istanbul, and assembling computer-controlled robots and lathes. The factory will soon turn out about 30,000 steel shells every month for the 155-millimeter howitzers that have become crucial to #Kyiv’s war effort. Ukraine fired between 4,000 and 7,000 such shells daily for several months in 2023, according to NATO’s secretary-general, before infighting among House Republicans held up further funding for Pentagon arms shipments. Large shipments of American artillery ammunition resumed in April after Congress passed an aid package that included $61 billion to Ukraine. The gap led to a drastic ammunition shortage for Kyiv, with Ukrainian troops able to fire only a fraction of the shells shot at them by Russian forces. To keep Ukraine’s artillery crews supplied, the Pentagon set a production target last year of 100,000 shells per month by the end of 2025. Factories in #Scranton and Wilkes-Barre, Pa., together make about 36,000 shells per month. The new General Dynamics facility in Mesquite, Texas, will make 30,000 each month once it reaches its full capacity. The 100,000-per-month goal represents a nearly tenfold increase in production from a few years ago. An Ohio-based defense firm called IMT is expected to make up the difference. Less than a year ago, the surrounding area here in North Texas was just a dirt field. But with millions of dollars from Congress and help from Repkon, the American defense firm General Dynamics was able to open the factory about 10 months after breaking ground. “Despite all our starts and stops with the government, the continuing resolutions and getting the last supplemental, the industrial base responds when you fund it and it’s done right,” William A. LaPlante, the Pentagon’s top acquisition official, said in an interview with his Army counterpart, Douglas R. Bush. According to Mr. LaPlante, the United States has provided more than three million 155-millimeter shells to Kyiv since the war began in February 2022. “When government and industry work together and US Congress gives us sufficient latitude, we can still do great things in this country really fast,” Mr. Bush added. Whether the increase in artillery ammunition production alone will be enough to change outcomes on the battlefield in Ukraine’s favor is, however, unknown.

The #Norwegian-Finnish Nammo AS ammunition manufacturer is switching to a round-the-clock production schedule at its plant in #Sweden to fulfill orders for #Ukraine. The #Swedish publication Dagens Nyheter reported on this. Nammo’s Swedish plant in #Karlskoga switches to 5-shift production schedule, operating seven days a week, which means round-the-clock production of 155 mm ammunition. “At the end of this year, we will probably produce twice as much ammunition as we did at the beginning of 2022. We think that’s very good, but the market thinks it’s woefully insufficient,” says Nammo Vice President Björn Andersson. The Karlskoga plant is one of only four producers of #155mm artillery shells in #Western Europe. It fulfills orders for shells that will be delivered to Ukraine in the future. Representatives of the company say that even though they have stepped up their operations, their capacity is still not enough to cover the demand of the warring Ukraine and replenish the depleted stocks of #European countries. “We feel terribly inadequate,” says Nammo’s Vice President. However, #Andersson emphasized that it is not enough to increase staff and expand the plant to be able to produce more shells. To increase supplies, Nammo needs to make efforts in several countries where components are manufactured. In particular, shell bodies are made, for example, in Norway and Finland. And one of the explosive brands is made in #Poland. However, a significant portion of the gunpowder and explosives are still manufactured nearby in the same city at EURENCO’s facilities. Daniel Rieden, a representative of EURENCO, said that his company has also switched to a round-the-clock explosives production schedule and plans to radically expand production to meet the demand for the scarce resource. “We work in five shifts on almost all Eurenco production lines. In #Karlskoga, we have increased our turnover by 100 percent in four years,”  says Daniel Ryden. Currently, according to Göran Mårtensson, CEO of FMV - Försvarets materielverk, who is leading a #Scandinavian project to increase ammunition production, the cost of a modern #155mm shell is SEK 85,000 or $8,000. “A modern projectile with a supplementary charge, and fuse costs approximately SEK 85,000. One million shells cost SEK 85 billion,”  he says. https://lnkd.in/gse4G5J3

Minister of Defense Hanno Pevkur (Reform) has tasked the Estonian Centre for Defence Investments // Riigi Kaitseinvesteeringute Keskus(RKIK) with creating an opportunity for companies to start producing combat munitions and ammunition at the #Ämari military campus through a selective bidding process, with operations expected to begin in the early part of next year. "In the current security situation, it is crucial to start ammunition production in #Estonia as soon as possible," said #Pevkur. "While we do not yet have a defense industry park, we must seek ways to expedite ammunition production in Estonia." "One option we are considering is to grant a company the opportunity to begin production even sooner at Ämari, where the necessary infrastructure that meets security and safety requirements is already in place," Pevkur added. In the near future, the RKIK will publish the terms and evaluation criteria for the selective bidding process in the Official Announcements and organize an information day for interested companies, the Ministry of Defense announced. The company that wins the selective bidding will be granted access to an approximately 8,900 square meter area within the Ämari military campus, which includes up to seven storage facilities. The conditions of the bidding include the use of the site for three years, with the possibility of extending it for an additional two years. The site must be used for the production of ammunition or combat munitions containing explosives. Additionally, the bidder must possess the required permits for production. The plan is to start ammunition production at the Ämari military campus no later than the early part of 2025.