When Rheinmetall reports record ammunition production, a detail that undermines the entire picture is rarely mentioned: a shell without a powder charge is an expensive paperweight. This is precisely why the expansion of Nitrochemie Aschau GmbH near Munich is arguably a more important step than opening new assembly lines.
What's happening in Aschau am Inn
By 2028, Rheinmetall plans to increase annual powder production at the plant to 4,200 tons, and powder charge production to over 1 million units per year. Investments amount to approximately €350 million, with the workforce nearly doubling to 1,300 employees. The groundbreaking ceremony for new production facilities took place on July 22, 2026.
Nitrochemie has already managed to increase capacity by 60% compared to pre-war levels, and by mid-2025 completed facilities that added another 40%. The current expansion is the third wave of increases in three years.
Why powder is the real shortage
Back in March 2024, Bloomberg identified a paradox: Europe is ramping up artillery shell production, but physically cannot assemble them due to a shortage of powder and TNT. Shell casings accumulated in warehouses—without a propellant charge, they are useless on the battlefield.
"The new production site in Romania is another step toward our goal of achieving an annual capacity of 20,000 tons of gunpowder by 2030."
Armin Papperger, CEO of Rheinmetall, after signing a JV with Pirochim Victoria
Aschau am Inn is one node in a broader network. Rheinmetall is simultaneously building powder capacity in Romania (joint venture Rheinmetall Victoria SA with Romarm subsidiary), and expanding its presence in Hungary, Slovakia, the Baltic states, and at a plant in Ukraine. The overall goal is 20,000 tons of powder per year by 2030 across the entire network.
Supply chain to the front
The practical significance of Aschau becomes clearer in the context of specific contracts. Nitrochemie already supplies modular powder charges DM72 for 155-mm shells ordered by an unnamed NATO country for Ukraine. Fulfillment of this contract is scheduled by April 2027—within the timeframe of the current expansion.
In August 2025, Rheinmetall opened Europe's largest artillery ammunition assembly plant in Unterluess—with capacity for up to 350,000 shells of 155-mm caliber per year. The first batch of RH1412 shells has already been shipped to Ukraine. But this plant depends on the very same powder that Aschau produces.
- 4,200 t/year—planned Aschau capacity by 2028
- 1 million+ powder charges per year from a single plant
- 20,000 t/year—Rheinmetall's network-wide goal by 2030
- 1,300 employees—staff after expansion (nearly double pre-2022 levels)
If Rheinmetall is investing €350 million in a single powder production plant, while simultaneously building similar capacity in five countries—this is not industrial optimization, it is an admission that pre-war Europe did not even have a basic reserve for a prolonged conflict.
The question is not whether Aschau will meet its 2028 deadline—the schedule is already underway. The question is whether this capacity will be sufficient if combat intensity increases rather than decreases by that time: 1 million charges per year covers front-line needs only if daily consumption rates do not exceed 2024 levels.
