The leaders of Germany and Denmark have joined in a ground-breaking ceremony for a new ammunition factory, underlining Europe’s efforts to ramp up its weapons production as Russia’s war in Ukraine grinds on

The leaders of Germany and Denmark joined in a ground-breaking ceremony for a new ammunition factory on Monday, underlining Europe’s efforts to ramp up its weapons production as Russia’s war in Ukraine grinds on.

The plant being built by defense company Rheinmetall at its existing site in Unterluess in northern Germany is expected eventually to produce around 200,000 artillery shells per year along with explosives and possibly other components, including warheads. Rheinmetall is shouldering the cost of about 300 million euros ($324 million).

Rheinmetall said that production at the site will primarily meet the needs of Germany’s military, the Bundeswehr. The company said the priority is to start production as soon as possible and it expects construction to take about a year.

German Chancellor Olaf Scholz, who attended the ceremony with his defense minister and Danish Prime Minister Mette Frederiksen, said Rheinmetall was “laying the foundation for supplying the Bundeswehr and our partners in Europe with artillery ammunition independently and above all durably.”