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Rheinmetall contracted to support explosives factory in Hungary

Rheinmetall Denel Munition has been contracted by the Hungarian government to deliver essential technology to support the construction of a new explosives factory.

Rheinmetall Denel Munition has been contracted by the Hungarian government to deliver essential technology to support the construction of a new explosives factory.

Located at Várpalota, the factory is expected to produce RDX (Research Department eXplosive) — an explosive substance and will be managed by a joint venture which includes Rheinmetall and Hungarian state-owned N7 Holding.

Rheinmetall has confirmed that the contract is valued in the low three-digit million-euro range and will include plant engineering, technology as well as training and expertise to achieve full-scale production.

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Having completed the planning phase, the project will commence in 2023 with production of RDX scheduled to commence by 2027.

The RDX can be used for an array of applications including artillery, tank and mortar ammunition.

Rheinmetall explained that the contract for the construction and fit-out of an RDX factory was in response to growing ammunition demand from Europe and NATO and supports European ammunition sovereignty.

Following completion, the Hungarian government will take over the factory, with Rheinmetall AG as the primary explosives customer.

Closer to home, Rheinmetall Defence Australia (RDA) announced the signing of a deed of agreement with Townsville-based RGM Maintenance in late 2022, aimed at supporting the delivery of medium and heavy capability services for logistics vehicles as part of the LAND 121 project.

Specifically, RDA has committed to delivering field service representatives, parts, tools, equipment and technical support to RGM. 

The agreement is tipped to bolster job and training opportunities in the region, while also supporting Australia’s broader ambitions to build sovereign industrial capability.  

“This ongoing opportunity expands the capability and strength of our business for the Australian Defence Force,” Gary Stewart, managing director of Rheinmetall Defence Australia, said.

“This true partnership between our companies will enable RGM to expand the services they already provide to the Commonwealth Joint Logistics Unit supporting Townsville units.

“I’m delighted that RDA will bring a raft of industry experience to the RGM business and provide a true industrial capability for the region, for now and years to come.”

RGM owners Russell Newman and Greg Jackson welcomed the opportunity to work alongside RDA to sustain the Australian Army’s logistics vehicles capability.

“RGM is delighted to become a Rheinmetall Australian Industry Capability partner and a member of the company’s global supply chain,” the pair noted in a statement.

“The many skills and years of experience this collaboration will bring are countless to Townsville,” they said.

RDA was contracted to supply more than 2,500 protected and unprotected military logistic trucks and modules to the Australian Army under the LAND 121 Phase 3B program.

Vehicles delivered as part of the project include:  

  • heavy integrated load handling (HX-77);
  • heavy tipper (HX-77);
  • medium tipper (40-M);
  • tractor (HX-81);
  • heavy recovery (45M);
  • medium-weight tray with crane (40M); and
  • medium-weight tray (40M).

In 2018, the government extended Rheinmetall’s contract, requesting an additional 1,044 vehicles and 872 modules, as well as ongoing support to the capability.

[Related: Rheinmetall to supply German Armed Forces with fleet of fuel tank trucks]

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