> ## Content Index > Fetch the complete content index at: https://www.adriadefense.com/llms.txt > Use this file to discover other available public pages before exploring further. # Rheinmetall Plans €270M Kassel Tank, Drone and Logistics Hub - URL: https://www.adriadefense.com/rheinmetall-plans-eur270m-kassel-tank-drone-and-logistics-hub/ - Published: 2026-08-28T10:00:02.000Z - Updated: 2026-08-28T10:00:04.000Z - Description: Rheinmetall plans to invest about €270 million in Kassel, expanding armored vehicle production and adding logistics and drone testing facilities. - Author: AdriaDefense Desk - Tags: Germany, Industry, DACH, Rheinmetall, Drones, Defense Industry Rheinmetall plans to invest about €270 million in Kassel and nearby Calden to expand armored vehicle production, establish a new logistics and technology center and create a drone testing facility. The German defense group and the State of Hesse presented the North Hesse Defence Hub on August 27, with the new 30,000-square-meter logistics facility scheduled to begin operations by the end of 2027. The investment positions Kassel for a larger role in Rheinmetall's military vehicle business as Germany and other European customers increase procurement. Chief Executive Officer Armin Papperger said the company is preparing the site for significant expected military vehicle orders from Germany and international customers. ## Rheinmetall prepares Kassel for higher armored vehicle output Rheinmetall already employs around 2,200 people at its Kassel site, which serves as the center of excellence for the company's Vehicle Systems Europe division. The plant develops, manufactures and maintains tactical wheeled and tracked military vehicles. The new investment will expand that existing industrial base while moving part of its logistics operation to nearby Kassel-Calden Airport. Reuters reported that Rheinmetall expects the expansion to make Kassel its largest tank production location in Europe. The approximately €270 million investment covers expansion of armored vehicle manufacturing as well as the new logistics and drone facilities. The company has not publicly detailed the resulting annual vehicle production capacity or provided a breakdown of how the €270 million will be divided among individual projects. Rheinmetall formally describes the investment as a three-digit-million-euro program. The State of Hesse will provide financial support, while the state government and Rheinmetall signed a memorandum of understanding for the North Hesse Defence Hub on August 27. The investment reflects the growing pressure on European defense manufacturers to expand physical production capacity rather than relying solely on existing factories to absorb larger order books. ## New 30,000-square-meter center will support military vehicle orders The logistics and technology center will cover more than 30,000 square meters in Calden, immediately adjacent to Kassel Airport. Rheinmetall describes it as one of its most significant infrastructure investments in Germany. Operations are scheduled to start by the end of 2027. The center will process both German and international orders and is intended to reduce processing times while increasing the capacity of Rheinmetall's supply chain. Its location also separates part of the logistics operation from Rheinmetall's existing Kassel factory. Moving transport and logistics flows to Calden is intended to reduce truck and delivery traffic around the existing plant in northern Kassel. Another 1,200 square meters will be dedicated to training. Employees from the Kassel factory and other Rheinmetall locations will use the facility for initial and continuing technical training. The Kassel Airport location provides direct transport infrastructure, available land and proximity to Rheinmetall's existing military vehicle production operation. Those factors led the company to select Calden after evaluating alternative locations. ## Rheinmetall will establish a drone test center at Kassel Airport The investment extends beyond armored vehicles and logistics. Rheinmetall plans to establish a dedicated drone test center at the Calden site, using Kassel Airport infrastructure for development and testing of the company's unmanned systems. The airport provides operating conditions that Rheinmetall considers particularly suitable for drone trials. A separate Hessian Drone Competence Centre is also planned at the airport, creating additional infrastructure around unmanned aircraft development and testing. The State of Hesse intends to expand the airport's military role beyond the Rheinmetall investment. State authorities have identified Bundeswehr training flights and research and testing of new drone technologies as future uses for Kassel Airport. Rheinmetall has expanded its unmanned systems activities as drones and loitering munitions take a larger role in European procurement. The company displayed its FV-014 tactical loitering munition during the August 27 presentation at Kassel Airport. ## Kassel investment follows Rheinmetall's rapid defense expansion The North Hesse project forms part of a wider expansion of Rheinmetall's European production footprint as the company prepares for larger German and NATO procurement programs. Rheinmetall reported group sales of €5.2 billion for the first half of 2026, up 39% year over year. Its nomination volume reached €16.2 billion during the same period. The Kassel investment targets a different constraint than new ammunition plants or individual production contracts. It combines additional vehicle manufacturing capacity with the logistics, training and testing infrastructure required to support higher production volumes. That distinction is important for Rheinmetall's tactical vehicle business. Producing additional armored vehicles requires more than assembly capacity, with spare parts, maintenance, engineering, training and international order processing becoming larger requirements as fleets expand. Papperger linked the Kassel investment directly to significant future orders expected from the Bundeswehr and international customers. The company has not identified which future contracts will require the additional capacity. The scale and timing of the expansion nevertheless indicate that Rheinmetall is adding infrastructure before those anticipated orders fully enter production. The next milestone will be construction of the Calden logistics and technology center, with operations planned by the end of 2027\. Expansion of the existing Kassel manufacturing site and development of the drone testing infrastructure will proceed as North Hesse takes a larger role in Rheinmetall's European industrial network. ## Rheinmetall Kassel expansion: key questions ### How much is Rheinmetall investing in Kassel? Rheinmetall plans investments totaling approximately €270 million in Kassel and the surrounding area, according to Chief Executive Officer Armin Papperger. The company officially describes the program as a three-digit-million-euro investment. ### What is Rheinmetall building at Kassel Airport? Rheinmetall plans a logistics and technology center covering more than 30,000 square meters in Calden next to Kassel Airport. The company also plans a drone test center and a 1,200-square-meter training facility. ### When will the new Rheinmetall Kassel facility open? The new logistics and technology center is scheduled to become operational by the end of 2027. ### Why is Rheinmetall expanding in Kassel? Rheinmetall expects significant future orders for military vehicles from Germany and international customers. The investment will expand armored vehicle production while increasing logistics, training and testing capacity needed to support a larger order volume.