Rheinmetall Builds First ‘Hybrid’ Plant in Hungary

Rheinmetall has begun building a new plant in Szeged, Hungary, that will cater to both their civil and defense businesses.

The plant is Rheinmetall’s first major hybrid site, estimated to cost around 63 million euros ($68 million), with a floor plan of 15,000 square meters (161,000 square feet) on an area of 85,000 square meters (915,000 square feet).

It will be part of the company’s power systems division, which focuses on advances in control technologies and digital applications for the automotive and energy industries.

Electrical components such as nanostructure capacitors will be manufactured in Szeged, as well as hydrogen-utilizing capabilities for mobility and energy regeneration.

A 10th of the production area will be occupied by the electronic solutions division’s military business.

Operation on the site is set to begin in August 2025.

Rheinmetall’s Expansion

The arms giant has been expanding its business in Europe to offset the depletion of the region’s arms reserves because of the ongoing Russo-Ukrainian war.

In 2024 alone, Rheinmetall began the construction of plants in Unterlüß, Germany, and Várpalota, Hungary. A third factory in Lithuania is currently in the planning stage.

It has also established a direct partnership with the EU, having its artillery shell production ramped up with $140 million in funding for ammunition production.

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