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[BUSINESS] · Germany · 21 sources

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Rheinmetall to invest hundreds of millions in North Hesse defense hub

Rheinmetall and the state of Hessen have signed a memorandum of understanding to establish the ‘Defence Hub Nordhessen’. This initiative involves a multi-hundred million euro investment to expand the company’s presence in the Kassel and Calden regions.

Key components of the project include the expansion of the Rheinmetall plant in Kassel to increase production of the Boxer armored vehicle, driven by a Bundeswehr order for up to 3,000 units. Additionally, a new logistics and training hub covering over 30,000 square meters will be built at Kassel-Calden Airport, with operations expected to begin by the end of 2027. The hub aims to optimize supply chains and reduce heavy vehicle traffic within Kassel city limits.

The plan also features the development of a drone testing center to leverage the infrastructure of the airport and the Hessian Drone Competence Center. The state of Hessen is supporting the initiative with a subsidy in the double-digit millions, including 25 million euros for the project and 8 million euros for the drone center. The expansion is projected to create more than 1,000 new jobs in the region.

Entities

Armin Papperger · Boris Rhein · German Armed Forces · Hessen · Kassel · Kassel Airport · Kassel-Calden Airport · Lithuania · Rheinmetall

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