The Hungarian government is building a new explosives plant for the production of so-called RDX (Research Department eXplosive) at the Rheinmetall site in Várpalota, Hungary. The plant technology for this is being supplied by Rheinmetall Denel Munition Pty (Ltd) of South Africa. In accordance with the contractual agreement dated December 15, 2022, the new plant will be operated in future by a joint venture between Rheinmetall and the Hungarian N7 Holding.
The total value of the order is in the low three-digit million euro range.
The project will start in 2023 after the planning phase has already been completed, so that production can begin by 2027. The explosives produced at the new plant can be used for artillery, tank and mortar ammunition, among other applications. The contract signed covers the supply of plant engineering, technology, process know-how, as well as related documentation, training and all activities to establish series production capability.
The project is a strategic investment to address the expected undersupply of explosives against the background of anticipated ammunition demand in Europe and NATO.