Expansion of the ammunition factory near Várpalota

„Europe's most modern artillery shell manufacturing plant is being built in the eastern part of Várpalota,” said László Palkovics, CEO of N7 Holding Nemzeti Védelmi Ipari Innovációs Zrt., at the laying of the foundation stone for the 155 mm artillery ammunition production facility at the Várpalota Defence Industry Complex on Wednesday, as reported by honvedelem.hu.

The following were present at the event: the main contractor ZÁÉV Építőipari Zrt., the lead designer bim.GROUP, the Óbuda-Újlak Zrt, E.ON Hungária Zrt, MVM XPert Zrt and Várpalotai Közszolgáltató Nonprofit Kft..

Large calibre artillery ammunition production from 2025

"Our factory building for the production of the 30 mm ammunition used by Lynx infantry fighting vehicles is now ready to be handed over to the joint venture companies that will use it, in partnership with the international defence and automotive company Rheinmetall, so that they can install the technology that will form the basis of production before construction is completed. We are also celebrating the fact that from 2025 we will also enable the domestic production of large-calibre artillery ammunition," László Palkovics told the portal.

The CEO emphasized that Várpalota was chosen because the city has a tradition of explosives production and the necessary chemical industry capacity is available locally. The proximity of the University of Pannonia, the vocational training centre and the Bakony shooting range ensure the expertise and the possibility to test ammunition on a regular basis.

Construction of the ammunition factory nears completion

László Palkovics recalled that last September, in the presence of the Minister of Defence, the topping-out ceremony was held for the ammunition manufacturing complex being built near Várpalota, known as „topping-out ceremony” for the ammunition manufacturing complex being built near Várpalota. The factory is being built by the ZÁÉV Zrt. and KÉSZ Csoport consortium in the general construction of will be implemented, with the participation of KÉSZ Csoport"s strategic partner, bim.GROUP, in the project.

Speaking at the ceremony, Rene Gansauge, who has been CEO of the Rheinmetall Weapons and Ammunition Division since last year, said he was impressed by the foresight with which the Hungarian government decided a few years ago to invest in military technology and Hungary's defence capabilities in partnership with the Düsseldorf-based company. The ceremony was attended by Márta Campanari-Talabér, Mayor of Várpalota, and Zsolt Nyitrai, Member of Parliament and Prime Minister's Envoy for Priority Social Issues.

Seven bunkers and 23 kilometres of utilities are also part of the project

The building permit for the new 155 mm ammunition production facility was granted on 23 November.

In addition to the production building, the project will also include the construction of seven NATO-compliant bunkers, a phosphate and paint building, and a social canteen and changing room building. The development also includes the construction of 4 kilometres of internal road, 23 kilometres of utilities, 2.5 kilometres of power lines, and two underground sprinkler tanks and a pumping station.

Production of medium calibre ammunition - 30 millimetre - could start as early as the last quarter of this year, while production of large calibre ammunition - 155 millimetre - could start in the last quarter of 2025.