Rheinmetall Adds Gun Barrels in Britain and Shells in Spain as UBS Cuts Its Target
Published on 10/25/2026 at 11:20 | Editorial boerse-global.de
Rheinmetall has opened a "UK Gun Hall" in the English town of Telford, restoring independent production of large-calibre weapons on British soil. At full utilisation the plant is designed to turn out up to 245 barrels and more than 50 breech mechanisms a year. The formal opening on Thursday followed a production start earlier in the year: breech assemblies began rolling in May 2026, with barrel manufacturing getting under way in June 2026. The site is set to employ as many as 100 people once output is ramped up, and the annual capacity figures apply to full operation.
The Düsseldorf-based group put its total UK investment over the past five years at more than GBP 200 million — a figure covering its activities across the country, not the Telford line alone.
Spanish line lifts medium-calibre output
Capacity is expanding on the continent as well. Rheinmetall Expal Munitions, the group's Spanish subsidiary, commissioned a new medium-calibre production facility in Albacete roughly a week ago. It is sized for about 1.2 million projectiles and some 1.8 million cartridge cases annually. The investment comes to around EUR 20 million, and the workforce there is due to grow from about 210 to roughly 300.
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A shipyard deal still to close
Naval ambitions are moving ahead in parallel. Rheinmetall and MSC jointly won the auction for the Mangalia shipyard in Romania, with a combined purchase price of about EUR 138 million. Completion is expected in a few weeks, according to the company. The yard is intended to marry civil and military shipbuilding, and for Rheinmetall's Naval Systems unit it would take part in building four naval vessels ordered by Romania.
UBS trims its target, keeps its rating
Against that industrial backdrop, UBS lowered its price target for Rheinmetall on Tuesday to EUR 1,360 from EUR 1,600 while leaving its "Buy" rating in place. Analyst Sven Weier tied the cut squarely to what he expects from the company's capital markets day: conservative rather than ever-rising objectives, so as to avoid disappointing investors. The recommendation itself was untouched by the adjustment.
Rheinmetall publishes its third-quarter 2026 report on 5 November.
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