VÁRPALOTA (dpa-AFX) - Germany's largest arms manufacturer Rheinmetall is making progress with plans to expand its ammunition production with a new plant in Hungary. The foundation stone has been laid on the site in Várpalota, the company announced in Düsseldorf on Tuesday.

The plant is to create 200 jobs, and from 2024, ammunition in 30-millimeter caliber for Rheinmetall's Lynx infantry fighting vehicle will be produced there. The Düsseldorf-based armaments manufacturer had received a two-billion-euro order from Hungary for this newly developed tank in 2020, and pre-series production recently began.

The ammunition plant will be operated by a joint venture in which Rheinmetall and the Hungarian state hold stakes. The company's announcement did not specify an investment sum.

Plans also call for the plant to produce 120-millimeter projectiles for the Leopard 2 main battle tank and 155-millimeter calibers for the self-propelled howitzer 2000. Part of the production is to be sold to the Hungarian army, while another part will go abroad. The company aims to reach full production capacity at the new plant in 2025. In addition, development activities are also planned there, the company statement said.

Hungary is becoming increasingly important for Rheinmetall. In addition to manufacturing the Lynx in the NATO and EU state and the new ammunition factory, Rheinmetall is busy advancing the digitalization of the Hungarian armed forces./wdw/DP/stk