FRANKFURT, July 24, 2026, 16:11 CEST
- Stock rises roughly 1.4%, trading close to €1,035 on Xetra at open.
- Aschau powder production is set to increase by 147%, with cultivated area expanding by 22%.
- China enacts a dual-use export restriction on Rheinmetall with immediate effect.
Rheinmetall stock climbed around 1.4% on Friday, trading near €1,035. Updated data from Aschau suggest that powder capacity per hectare is set to nearly double by 2028.
The facility is set to grow from 90 hectares to approximately 110. Yearly powder production is expected to increase from 1,700 tonnes to 4,200 tonnes.
This increases capacity density to approximately 38 tonnes per hectare, up from about 19. The figure is nearly doubled.
The €350 million budget translates to €140,000 spent for each additional tonne per year. The additional 2,500 tonnes represent 12.5% of Rheinmetall’s 2030 group objective.
| Aschau measure | Current level | Planned or full-rate level | Implied change |
|---|---|---|---|
| Powder output | 1,700 tonnes per year | 4,200 tonnes per year | +147% |
| Propellant-charge modules | 300,000 per year | Over 1 million per year | More than +233% |
| Employees | Above 800 | 1,300 | Roughly +60% |
| Site area | 90 hectares | Approximately 110 hectares | +22% |
Company data indicates production is expanding at a significantly higher rate than the physical site area. Calculations for percentage growth and density are derived from the information provided.
Chief Executive Armin Papperger described the construction as a move to address bottlenecks. “None of these components shall be a bottleneck,” he said. Rheinmetall
According to Papperger, there are only a limited number of suppliers of propellant worldwide. The Aschau facility will account for 21% of Rheinmetall’s anticipated group capacity of 20,000 tonnes in 2030.
The stock was set to record a fifth consecutive session of gains. Xetra’s primary trading hours continued, with the market closing at 17:30 local time. The DAX rose roughly 0.8%.
Shares of German defence companies were also up. Hensoldt (ETR:HAG) rose 2.6%, and Renk Group (ETR:R3NK) increased by 0.4%.
Rheinmetall’s stock is up roughly 5% since the close last Friday. Shares are still trading nearly 49% lower than the record reached in October 2025. The difference remains significant.
The rebound comes after a significant downturn in June. Rheinmetall shares dropped 18.7% on June 24 following Germany’s cancellation of the F126 frigate program. Berlin indicated that building six vessels might have exceeded €18 billion in costs.
The distinction is significant. Rheinmetall did not win the F126 contract. Aschau operates with a defined budget, schedule, and clear production targets starting from 2027.
New trade tensions emerge as China on Friday imposed an immediate export ban on dual-use goods to Rheinmetall and 13 additional EU organisations.
Risks: The European Union continues to review China’s export restrictions, covering some rare earth elements. Delays in construction or qualification at Aschau could also postpone the scheduled 2028 ramp-up.
The next major test is scheduled for August 6, when Rheinmetall will release its first-half results at 14:00 CEST.
Sales for the first quarter increased by 8% to €1.94 billion. Operating free cash flow posted a negative figure of €285 million due to higher inventories and a rise in working capital.
