Rheinmetall Expands in Zalaegerszeg with €9.5 Million Investment
German defense giant Rheinmetall is deepening its presence in Hungary with a new development and engineering center for the defense industry at its Zalaegerszeg plant.
ALAEGERSZEG, Hungary — German defense giant Rheinmetall is deepening its presence in Hungary with a new development and engineering center for the defense industry at its Zalaegerszeg plant. The €9.5 million (HUF 3.7 billion) investment, announced Friday by Hungarian Minister of Foreign Affairs and Trade Péter Szijjártó, will create 80 high-skilled jobs focused on research, development, and testing of advanced armored platforms.
The Hungarian State will contribute HUF 560 million (€1.4 million) in support, underscoring the government’s commitment to strengthening domestic defense capabilities under the Zrínyi 2026 Armed Forces Development Program.
“We live in an age of danger, and the threat of a third world war is becoming more real every day,” Minister Szijjártó warned. “Peace requires strength. This investment brings us closer to meeting the Hungarian Armed Forces’ needs through our own production.”
Boosting Hungary’s Defense Autonomy
The new expansion will increase the Zalaegerszeg plant’s development, engineering, and testing capacity by nearly 50%, enabling joint development of new variants of the Lynx infantry fighting vehicle (IFV) and contributing to the design of the Panther KF51 main battle tank — both cornerstone platforms of Rheinmetall’s armored vehicle portfolio.
Paul Walf, CEO of Rheinmetall Hungary Zrt., highlighted the strategic significance of the project, launched originally as a greenfield investment in 2020.
“The experts at the new center will work closely with their German colleagues on future armored platforms,” Walf said, adding that 172 of the 218 Lynx IFVs ordered by Hungary will be delivered from domestic production by 2029.
Partnerships with Hungarian Academia
To strengthen Hungary’s defense innovation ecosystem, Rheinmetall Hungary has forged partnerships with seven universities, including Széchenyi István University in Győr and Budapest University of Technology and Economics (BME). The 80 new positions will be filled by Hungarian engineers, researchers, and computer scientists, anchoring high-value jobs in the country’s growing defense tech sector.
German-Hungarian Economic Cooperation
Minister Szijjártó underscored that Germany remains Hungary’s most important trading partner, with German firms employing over 300,000 Hungarians. Over the past decade, 324 German-led investments have been supported by the Hungarian government, creating 40,000 jobs.
According to a recent German-Hungarian Chamber of Industry and Commerce survey, 80% of German companieswould choose Hungary again as an investment destination — a testament to the country’s stable industrial environment and government-backed incentives.
Adria Defense Analysis
Rheinmetall’s Zalaegerszeg expansion demonstrates Hungary’s strategic push toward defense self-reliance, industrial modernization, and NATO interoperability. With a growing domestic production base and engineering capability, Hungary is positioning itself as a key Central European hub for armored vehicle innovation and manufacturing.
