Rheinmetall Strengthens Ammunition Supply Chain with Acquisition of Nitrocellulose Maker Hagedorn-NC

In a strategic move to ensure a steady supply of vital raw materials for ammunition production, German defence giant Rheinmetall AG has announced its acquisition of Hagedorn-NC GmbH—a historic producer of industrial nitrocellulose based in Osnabrück, Lower Saxony. The deal is pending antitrust approval but marks a significant step in Rheinmetall’s efforts to secure its defence production lines amidst rising global demand.

Hagedorn-NC, which has been in operation for over a century, specializes in nitrocellulose—a key ingredient in the production of propellants for various types of ammunition, especially artillery shells. Until now, the company focused primarily on civilian markets. However, under Rheinmetall’s ownership, a portion of its output will be redirected towards military applications, including the manufacture of 155mm artillery ammunition, which has seen heightened demand due to ongoing geopolitical tensions.

Rheinmetall CEO Armin Papperger described the acquisition as a crucial move to “overcome a strategic bottleneck in propellant production,” reinforcing the company’s vertical integration strategy. With this deal, Rheinmetall not only secures a new and reliable source of nitrocellulose but also brings more of the ammunition supply chain directly under its control—from raw material to finished product.

The company already operates nitrocellulose production facilities in Switzerland (Wimmis), Spain (Murcia), and South Africa (Wellington). By adding Hagedorn-NC’s Lingen site, Rheinmetall is broadening its production footprint and reducing dependence on external or non-European suppliers. This geographic diversification enhances supply chain resilience—especially critical during times of conflict or trade disruption.

Going forward, Rheinmetall plans to adapt parts of the Lingen plant to produce military-grade nitrocellulose, while still maintaining support for Hagedorn-NC’s existing civilian customer base. Around 90 employees from Hagedorn-NC will join the Rheinmetall Group, and their future employment is expected to remain secure.

Gerd Hofmann, CEO of Hagedorn AG, voiced optimism about the transition, noting that the partnership with Rheinmetall will open new avenues for growth and collaboration. His confidence is rooted in the shared industrial know-how and the complementary strengths of both companies.

This acquisition comes at a time when NATO countries are increasing their stockpiles of ammunition and expanding defence manufacturing capabilities. By securing a stable source of nitrocellulose—an essential yet often overlooked element in the ammunition-making process—Rheinmetall is positioning itself as a reliable and self-reliant defence supplier in Europe and beyond.

In essence, the deal goes beyond just acquiring a company—it’s about controlling a critical link in the defence production chain. By bringing in Hagedorn-NC, Rheinmetall is not just making propellants—it’s fortifying its ability to meet the growing defence needs of allied nations for years to come.