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[BUSINESS] · Germany, China · 4 sources

Rheinmetall expands Aschau powder plant to double output amid Chinese export controls

German defence contractor Rheinmetall is building a large explosive‑powder factory in Aschau am Inn, Bavaria. The investment in the plant is €350 million, part of a €650 million program to increase the company’s powder‑production capacity. Full production lines are scheduled for 2027, with the facility aiming to raise annual output to roughly 4,200 tonnes of explosive powder by 2028 – more than double current levels – and to grow the workforce from about 800 to 1,400 employees.

The expansion, dubbed “Project Firepower”, is intended to meet rising ammunition demand from Europe’s re‑armament efforts after the war in Ukraine. Rheinmetall also secured a government contract to develop a laser‑weapon system for drone defence, with three naval demonstration units to be delivered by the end of the decade, valued in the mid‑three‑digit‑million‑euro range. CEO Armin Papperger asserted, “Without explosive powder it is impossible to protect people.”

China has placed Rheinmetall on an export‑control list, restricting the export of dual‑use items, but the company says its supply chain is secured, holding enough powder reserves for about four years and developing wood‑based cellulose alternatives to reduce dependence on Chinese cotton‑linters.

Entities: Armin Papperger · Aschau am Inn · Bundeswehr · China · Rheinmetall AG

Claims

What the coverage asserts, and how well corroborated each claim is across sources.

  • [● 2 SOURCES] The investment for the Aschau plant is €350 million, part of a €650 million programme. (Corporate investment figures)
  • [● 2 SOURCES] Rheinmetall is constructing a large powder factory in Aschau am Inn, Bavaria. (Rheinmetall plans and construction details)
  • [● 2 SOURCES] Rheinmetall received a German government contract to develop a laser‑weapon system for drone defence, including three naval demonstration units. (Government contract details)
  • [● 2 SOURCES] China placed Rheinmetall on an export‑control list restricting dual‑use goods. (Export control action)
  • [○ 1 SOURCE] CEO Armin Papperger said, “Without explosive powder it is impossible to protect people.” (CEO statement)
  • [○ 1 SOURCE] Rheinmetall claims it has powder reserves sufficient for about four years and is developing wood‑based cellulose alternatives. (Supply‑chain comment)
  • [● 2 SOURCES] The factory aims to increase annual explosive‑powder output to about 4,200 tonnes by 2028. (Production capacity target)
  • [○ 1 SOURCE] Project Firepower will raise the Aschau site workforce from roughly 800 to 1,400 employees. (Employment plan)