Rheinmetall plans a three-digit-million-euro investment in a new logistics and technology center at Kassel Airport as it increases its military vehicle operations in northern Germany.
Under a memorandum of understanding signed with the Hesse state government, the German defense company will build the center at Kassel-Calden Airport and expand its existing Kassel site.
The new facility will have more than 30,000 square meters (322,917 square feet) of floor space and is scheduled to become operational by the end of 2027.
Rheinmetall said the center will handle logistics for domestic and international orders, helping shorten processing times and improve supply chains. It will also include about 1,200 square meters (12,916 square feet) of training space for employees from the Kassel plant and other Rheinmetall sites.
A planned drone test center will add another function to the site. Rheinmetall said Kassel Airport offers conditions that are particularly suitable for testing its drones, while the planned Hessian Drone Competence Centre would provide additional infrastructure for the work.
The company expects the project to create additional jobs in the region, including positions in logistics, technical work, administration, and training.
Rheinmetall CEO Armin Papperger said the company also expects significant future orders for military vehicles from Germany and abroad.
North Hesse Defense Hub
North Hesse already has a major defense manufacturing base in Kassel, where Rheinmetall operates a plant focused on the development, production, and maintenance of tactical wheeled and tracked vehicles. About 2,200 people currently work at the site.
Hesse’s government also wants Kassel-Calden to play a larger role in military activities, including training flights and testing for new drone technologies.
“Rheinmetall’s multi-million investment is a strong signal for North Hesse as a center of innovation and defense,” Minister-President Boris Rhein said.
The move also fits into a wider German effort to attract and expand defense-industry capacity. International companies including Norway’s Kongsberg and Finland’s ICEYE have been establishing or expanding operations in Germany as Berlin increases military spending and seeks greater domestic and European production capacity.