Rheinmetall CEO Papperger confirms that they have reached their production target of 700,000 155mm rounds per year. Last month’s CMD Presentation identifies a new target of ~1.1 million/year in 2027, and Papperger has since mentioned a further target of 1.4 million/year by an unspecified date.

3 comments

1. CMD: Capital Markets Day

   you can check it out ,its actually impressive, even more so when considering their reported margins in 2024 have barely increased compared to last year

   [https://ir.rheinmetall.com/investor-relations/calendar-events/capital-markets-day/](https://ir.rheinmetall.com/investor-relations/calendar-events/capital-markets-day/)

   on page 20, they specifically mention 155mm artillery shell production target of 1.1 million by 2027, and tank shell 120mm production target of 150,000

   on page 35, they mentioned that they have delivered 1,4 million rounds of ammunition to Ukraine since 2022, 110 airdefense, satcom and UAV system, 250 armored vehicles and 300 trucks

   on page 37 they mention the first Lynx armored vehicles production from JV in Ukraine

2. looking into the recent Rheinmetall CEO interview, he did specifically mention a goal of 1.4 million per year

   this part is really interesting

   >BZ: In the case of a larger order, could they act in the same way as in the automotive industry?

   >The car industry has completely different quantities. But let me give you an example of the military trucks that we produce. In Vienna we have a capacity of 4,000 trucks per year, military trucks, not road scooters, really military vehicles. And when you walk through the plant, you see a production that is very similar to automobile production. Of course, if you look at t**ank production, where we produce maybe 70 or 100 a year, you can’t build an assembly line or robots**. That makes no sense, because the investment sum is far too large compared to what comes out. **So if you really needed orders as large as those in Russia, then we could also expand these plants. We have shown this with ammunition. With ammunition, we have grown from 70,000 rounds to 700,000 and then soon to 1.4 million. This is fully automated production. And if you take a look at our new ammunition plant in Unterlüß in Lower Saxony next year, you will see that it generates around 1 billion euros in sales with very few people. This is perhaps better automated than many car manufacturers have done.**

   translated via Deepl

   their ammo factories are fully automated, only 500 workers will be needed to produce 200,000 155mm shells

   scaling up that by a factor of 10, for 2 million 155mm shells per year they would need roughly 5000 workers, or 25,000 workers for 10 million shells a year

   this is a huge deal, because i always see the claim that Russian defense spending can go along much further due to lower salaries, but when German firms need 3-4 fewer workers for the same amount of shells, that advantage gets cancelled out

   [https://www.boersen-zeitung.de/unternehmen-branchen/rheinmetall-chef-papperger-der-konventionelle-krieg-ist-zurueck](https://www.boersen-zeitung.de/unternehmen-branchen/rheinmetall-chef-papperger-der-konventionelle-krieg-ist-zurueck)

3. This has to be the greatest name for a company that makes artillery shells. 

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