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This major investment positions Rheinmetall at the heart of Britain’s defence industrial revival, supporting both the modernisation of the British Army and the UK’s role in strengthening NATO’s collective readiness. With production set to begin by 2027, the UK will once again join the ranks of nations capable of manufacturing large-calibre barrels – vital for national defence and global export.

Momentum is already building. Rheinmetall has placed orders for key long-lead manufacturing equipment, ensuring rapid progress and reinforcing its full commitment to delivering this critical capability on time.

Expanding on an Industrial Powerhouse

The new facility will use British steel and advanced manufacturing to deliver next-generation barrel systems for both UK and allied platforms. With plans to inject over £400 million into the UK economy over the next decade and create more than 400 jobs – directly and indirectly via supply chain – this will revitalise the local industry and boost prosperity in Telford and beyond.

The Rt Hon Mark Pritchard MP for The Wrekin constituency in Shropshire shared:

‘’This is fantastic news for the whole of Shropshire – for local suppliers and for the employment and skills this major investment will bring. I’ve worked tirelessly with Rheinmetall senior management to secure this investment for the area and I’m pleased that ministers have listened to our joint representations. This is a big day for the county as a whole.”

By restoring this vital capability – which has been lost in the UK since 2016 – Rheinmetall is positioning Britain as a defence manufacturing leader once again.

This initiative is a key pillar of Rheinmetall UK’s broader strategic investment plan to grow our industrial footprint, with over £70 million already committed to strengthening sovereign capabilities, driving innovation and supporting job creation. Key elements of this investment include the expansion of the Telford facility to support Boxer and Challenger 3 production, alongside the development of Rheinmetall House in Bristol – the UK headquarters and Collaboration and Innovation Centre – further advancing engineering excellence and MoD collaboration.

Powering the Army’s Transformation

As the British Army pushes to triple its warfighting power by 2030, Rheinmetall’s new gun hall will provide the advanced systems required to meet that vision. From enhanced firepower to sovereign supply chain security, this facility will directly support the Army’s future force structure and readiness for modern conflict – including the demands seen in Ukraine and other high-threat environments.

Rheinmetall’s priorities for 2025 and beyond include scaling up Boxer production, advancing Challenger 3 trials, and operationalising the new gun hall. These efforts are underpinned by major investment in UK defence skills – including apprenticeships, graduate programmes and industrial placements – ensuring long-term capability and sustainability. Rheinmetall is also expanding SME involvement in its global supply chain, strengthening domestic production and boosting UK exports.

Strengthening NATO

Beyond the UK, the facility will support NATO’s mission by supplying interoperable, advanced weapon systems across allied nations. It paves the way for even deeper UK involvement in multinational programmes and secures Rheinmetall’s role as a cornerstone of NATO’s industrial base.

Leading with Action

‘’This isn’t just an investment – it’s a statement,” said Armin Papperger, CEO and Chairman of Rheinmetall Germany. “We’re delivering the infrastructure, the technology, and the ambition to place the UK at the forefront of global defence manufacturing. With the location now confirmed and critical equipment already on order, Rheinmetall is moving at pace to turn vision into reality.”

This is more than a facility. It is a foundation for the future of British defence.