ALBACETE, Spain — German defence contractor Rheinmetall is investing approximately €20 million to expand ammunition and mortar production at its Albacete facility in Spain. The project, led by subsidiary Rheinmetall Expal Munitions, will introduce medium-calibre ammunition production and increase mortar manufacturing capacity, raising the site's workforce from around 210 to approximately 300 employees.
The investment is part of Rheinmetall's Firepower programme, which aims to increase ammunition production across Europe to meet demand from NATO members and other allied forces.
Medium-Calibre Ammunition Production
Starting in October 2026, the Albacete facility is scheduled to produce approximately three million medium-calibre ammunition components annually, including 1.2 million projectiles and 1.8 million cartridge cases in calibres ranging from 20 mm to 35 mm.
The components are intended for infantry fighting vehicles and anti-aircraft gun systems. Production will include armour-piercing projectiles, kinetic-energy time-fuze ammunition and AHEAD ammunition used in air defence and counter-drone operations. The components will be shipped to other Rheinmetall facilities, including its Burgos plant in Spain, for processing into finished ammunition.
To support production, Rheinmetall has modernised and extended an existing 5,700-square-metre building, installing new machinery, technical infrastructure and automation technology.
Expanded Mortar Manufacturing
Rheinmetall has also constructed a separate 5,200-square-metre building in less than a year to expand mortar production. The facility will support annual production of 40 Dual-Eimos 81 mm mortar systems and more than 650 standard mortars in 60 mm, 81 mm and 120 mm calibres.
The site already specialises in EIMOS 81 mm systems and is preparing for series production of the EIMOS 120. The new building is also structurally designed to accommodate aircraft maintenance operations.
Officials Highlight Strategic Importance
The expansion ceremony was attended by Spanish Secretary of State for Defence Amparo Valcarce, German Ambassador to Spain Heiko Thoms, Albacete Mayor Manuel Serrano López and Rheinmetall Chief Executive Armin Papperger.
Valcarce said a credible deterrent requires well-prepared and properly equipped armed forces capable of sustaining operations, highlighting the importance of a strong defence industry.
Papperger described Albacete as a key centre for ammunition components and weapon systems manufacturing. He said the investment would introduce a new medium-calibre capability while strengthening the site's existing mortar production expertise, increasing its importance for Rheinmetall, Spain and Europe.
European Expansion and 2030 Targets
Rheinmetall is expanding its European production network through new ammunition plants in Unterlüß, Germany, and Baisogala, Lithuania, alongside upgrades at existing facilities such as Aschau am Inn in Germany.
By 2030 at the latest, the company aims to achieve annual production capacity of four million medium-calibre rounds, 1.5 million rounds of 155 mm artillery ammunition and 240,000 rounds of 120 mm anti-tank ammunition.
The Albacete expansion is expected to create additional opportunities for regional suppliers. The facility currently works directly with 23 local companies and another 87 regional firms.
Across Spain, Rheinmetall reports approximately 3,400 direct employees at the Madrid headquarters of Rheinmetall Expal Munitions and its six factories. Its Spanish operations are supported by around 1,300 suppliers receiving annual orders worth approximately €500 million.
The investment strengthens Albacete's established role in mortar systems and ammunition components while adding medium-calibre production capacity to Rheinmetall's European manufacturing network.
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