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French defense contractor Eurenco has announced it will invest $540 million to revitalize and expand its explosive powder production capabilities.

During his visit to Eurenco’s facility in Bergerac, French President Emmanuel Macron detailed the plan, which aims to double the production of artillery propellants and restart the manufacture of explosive powders that had ceased in 2007.

Macron’s visit coincided with the beginning of construction for new production capacities. He said, “The investment in Bergerac is, for me, the image of this industrial reconquest and military sovereignty that we want for ourselves and for Europe.” Macron also addressed the site’s historical significance in producing artillery powder since World War I.

The ministry outlined ambitious production targets to support the increased demand for military supplies, especially in light of recent geopolitical tensions. According to the Armed Forces Ministry, “The target is for the Bergerac site to produce 1,200 metric tons of explosive powder a year, equivalent to 500,000 modular propellant charges.”

Further highlighting the necessity of this initiative, Macron said, “France has concluded that if it wants to accelerate artillery shell production and secure supply, it needs to control the entire process, including powder.” Currently, this critical component is imported from Sweden, which the new Investment aims to change.

In addition to increasing production capabilities, Eurenco plans to significantly expand its workforce, growing from 200 to 450 employees within the next two years. This development is part of a broader European effort to bolster ammunition production, supported by $80 million in subsidies from the European Commission.