(Finance) – The German arms manufacturer Rheinmetall has won a contract for an explosives factory in Várpalota, Hungary. The Hungarian state is building a new explosives plant to produce RDX (Research Department eXplosive) at the site and Rheinmetall will handle the necessary plant technology. Under the contract signed on December 15, 2022, a new plant will be built and operated by a joint venture consisting of Rheinmetall and N7 Holding, a Hungarian state-owned enterprise.
The precise value of the contract was not communicated, but it was pointed out that it falls within a range “low three-digit million-euro”therefore several hundred million euros.
Once the design phase has been completed, the project will start in 2023, so that production can begin by 2027. The explosives produced in the new plant can be used, among other things, for artillery ammunition, tanks and mortars. The contract provides for the supply of plant, technological and process know-how, as well as the related documentation, training and all the activities necessary to achieve full-scale production.