Rheinmetall AG (RHM.DE) shares closed 6.53% higher at €1,093.00 on October 16th.
The rally follows the commissioning of a new medium-calibre production facility in Albacete, Spain. This site represents a €20 million investment to significantly expand ammunition manufacturing capacity.
The expansion is a central component of the Firepower project, which aims to meet increased ammunition demand across the Western world. The new facility will increase the local workforce to scale production of projectiles, cartridge cases, and mortars.
Market observers attribute the stock performance to positive investor sentiment regarding the company's production enhancements amid a strong defense spending environment.