Rheinmetall’s new UK gun factory opens opportunities for British defence suppliers

Rheinmetall has opened a new weapons factory in Telford, Shropshire, bringing large-calibre gun barrel manufacturing back to the UK for the first time in 20 years.

The German defence group opened its UK Gun Hall on 22 October. It will produce 120mm and 155mm weapon systems for the British Army‘s Challenger 3 tanks and artillery programmes.

More than 100 skilled jobs are expected as production increases. Rheinmetall also plans to buy steel from Sheffield Forgemasters and award more work to UK engineering and manufacturing companies.

The 11,500-square-metre factory can produce up to 245 gun barrels and more than 50 breeches a year at full capacity.

Manufacturing began before the official opening. Production of breeches and breech blocks started in May, followed by gun barrels in June. Rheinmetall converted the previously empty industrial building into a working factory in eight months.

The company currently employs around 685 people in Telford, including 35 at the Gun Hall. It expects to recruit more staff as orders increase.

Workers have received specialist training at Rheinmetall’s Unterlüß factory in Germany, including instruction in precision manufacturing and quality control.

British steel and supply-chain opportunities

Rheinmetall plans to use steel from Sheffield Forgemasters, which manufactures specialist steel products for defence and other industries.

The proposed arrangement was included in the Ministry of Defence’s announcement of a nearly £1 billion contract for 72 RCH 155 self-propelled howitzers in May.

Under that programme, the Telford factory will manufacture gun barrels, breeches, recoil systems and trunnions.

Sheffield Forgemasters employs around 720 people. The government-owned company is investing in new manufacturing equipment to increase its production capacity.

Rheinmetall has not yet confirmed how much steel it will buy from Sheffield Forgemasters or when deliveries will begin.

The company also plans to increase purchases from UK small and medium-sized enterprises (SMEs).

Potential suppliers include businesses specialising in precision machining, metal fabrication, engineering and components used in weapons manufacturing.

Rheinmetall previously estimated that its investment in Telford could generate more than £400 million in economic activity over 10 years. That figure includes anticipated spending and employment beyond the factory itself.

Work on Challenger 3 and RCH 155

The Gun Hall will manufacture weapons for the Challenger 3 main battle tank and the RCH 155 artillery system.

Rheinmetall and KNDS are developing the RCH 155 through their ARTEC joint venture. It combines a 155mm artillery system with the Boxer armoured vehicle platform.

The Ministry of Defence expects the RCH 155 programme to support 100 jobs at Rheinmetall in Telford, 100 at KNDS in Stockport and approximately 300 more across the UK supply chain.

The Stockport factory will manufacture Boxer drive modules, while Telford will produce artillery weapon systems.

The project follows an earlier £53 million contract awarded to ARTEC, including £30 million towards establishing the Gun Hall.

First deliveries of the RCH 155 are scheduled for 2028.

Rheinmetall also manufactures and supplies equipment for the British Army’s Boxer and Challenger 3 programmes through its existing UK operations.

UK defence manufacturing

The Telford opening follows the UK government’s decision to increase domestic weapons production and reduce its reliance on imported military equipment.

The factory will give the UK the capacity to manufacture large-calibre gun barrels for its own military programmes, with the potential to supply other NATO countries.

The investment is also linked to the Trinity House Agreement, signed by the UK and Germany in October 2024. The agreement covers closer cooperation on defence equipment, weapons production and military technology.

Rheinmetall chief executive Armin Papperger said the company was combining its manufacturing experience with British engineering and industrial expertise.

“By combining Rheinmetall’s expertise with British skills, innovation and manufacturing, we are strengthening the UK’s sovereign industrial capacity, supporting the Armed Forces and contributing to the security of NATO and Europe.”

Wes Streeting, Secretary of State for Defence, attended the opening and welcomed the return of large-calibre gun manufacturing.

“One hundred skilled jobs in world-class manufacturing and the return of large-calibre weapon production to UK soil for the first time in twenty years – this is what defence as an engine for growth looks like.”

The factory is part of Rheinmetall’s investment of more than £200 million in its UK operations over the past five years.

The company expects to increase production at Telford and recruit more staff. It is also looking to expand its network of British suppliers as work on the Challenger 3 and RCH 155 programmes progresses.