Rheinmetall Powder Plant: Foundation-Laying in Aschau am Inn

As part of its major “Firepower” project, Rheinmetall is massively expanding its production capacities for ammunition and propelling charge components. On July 22, the official foundation-laying ceremony was held at the long-established site of its subsidiary Rheinmetall Nitrochemie in Aschau am Inn for one of Europe’s most modern powder plants. The ceremony was attended by Bavarian Prime Minister Markus Söder, Parliamentary State Secretary in the Federal Ministry of Defence Nils Schmid, and Bavaria’s Minister of Economic Affairs Hubert Aiwanger, among others.

Guests of honor at the foundation-laying ceremony: State Secretary Nils Schmid (MoD), Armin Papperger (Rheinmetall), Markus Söder and Hubert Aiwanger (Bavarian Government). (© Rheinmetall)

€350 Million Investment

On a plant area expanded from 90 to 110 hectares, the production of propelling charges for barrel artillery and other large-calibre systems is being significantly increased. Rheinmetall is investing around €350 million directly into the Aschau site, while €650 million is being allocated group-wide into the manufacturing of propellant powder and energetic precursors. This expansion brings a strong boost to employment. After the workforce in Aschau has already grown significantly to over 800 employees since 2022, several hundred additional jobs are now set to be created, bringing the future workforce at the site to around 1,400.

Entire Value Chain Bundled in a Single Location

Currently, the Aschau plant operates around the clock in shift work, producing approximately 1,700 metric tons of powder and 300,000 propelling charge modules per year. Within the next 24 months, this output is projected to more than double. Starting in 2027, production in the newly built facilities will gradually commence before reaching maximum capacity in 2028. At that point, Aschau is expected to produce a total of 4,200 metric tons of powder, over five million combustible molded parts, and more than one million modular propelling charge modules. A key advantage is that the entire value chain for propelling charges is seamlessly bundled at this single location.

Politicians and corporate management emphasized the strategic importance of the construction project. Prime Minister Söder highlighted that the investment contributes decisively to the resilience and autonomy of Germany, the EU, and NATO, while strengthening defense capabilities. State Secretary Schmid called the expansion a security policy necessity to meet the acute demand for ammunition and to make European supply chains more crisis-resilient. Rheinmetall CEO Armin Papperger also stressed that self-sufficiency in propellant powder is essential, as the raw material is produced by only a few manufacturers worldwide and must under no circumstances become a bottleneck.

Architectural sketch of the new powder plant in Aschau am Inn. (© Rheinmetall)

“Firepower”: 20,000 Metric Tons of Propellant Powder Annually

Group-wide, Rheinmetall is pursuing the goal through the “Firepower” project of reaching an annual capacity of 20,000 metric tons of propellant powder by 2030. In addition to the Aschau facility, this network also includes the plant in Unterlüß as well as the locations of the German-Swiss Nitrochemie Group in Wimmis, as well as Murcia and Burgos in Spain.

Gerhard Heiming