Rheinmetall is expanding its Aschau am Inn plant into Europe's largest gunpowder factory, aiming to more than double annual propellant output to 4,200 metric tons by 2028 from the current 1,700 tons. The German defense company plans to increase propellant module production from 300,000 to one million units annually, with the subsidiary Nitrochemie's new facilities expected to begin production within 12 to 13 months.
The site's workforce will grow to between 1,300 and 1,400 employees, while annual revenue is projected to reach 700 million euros, roughly three to four times current levels. Total investment figures range from 350 million to 500 million euros. Separately, Rheinmetall plans a competence center for electronics, digitalization, and AI near Munich with about 500 staff.
CEO Armin Papperger said the company holds nitrocellulose reserves for the next four years and is qualifying wood-derived cellulose as an alternative to cotton linters. Rheinmetall shares have fallen 35% year-to-date as of July 2026.