Rheinmetall expands production and workforce as Germany's defence push accelerates

Rheinmetall AG announced a €350 million investment to expand its propellant‑powder plant in Aschau am Inn, aiming to raise annual output from 1 700 t to 4 200 t by 2028 and eventually to 20 000 t by 2030. The project will increase the site’s staff from about 800 to 1 300 workers.

At a regional IHK forum, CEO Armin Papperger outlined the company’s broader “Zeitenwende” strategy, stressing that security is now a prerequisite for prosperity. He cited a 2023 turnover of €10 billion with 34 000 employees and a target of €50 billion and up to 70 000 staff by 2030, producing combat vehicles, drones, satellites and other weapon systems. The former automotive Pierburg plant in Neuss is being converted to defence production, with plans for over 1 000 employees to build drones, Skyranger air‑defence towers and SAR satellites in partnership with Finnish firm Iceye.

Analysts note the Rheinmetall share price has recently recovered from a low after the cancellation of a F126 frigate order, trading near the €1 000 mark, but they remain cautious about the long‑term impact of the security‑era shift.