Rheinmetall 's newly-opened factory in Northern Germany — set to become Europe's biggest ammunition production facility — is another step in the region's race to catch up with Russian output, according to the company's chief executive.

CEO Armin Papperger on Wednesday told CNBC that Russia had the capacity to put out 4 to 5 million artillery ammunition rounds a year. Comparatively, he said Europe has a yearly output of around 2 million, more than half of which is produced by Rheinmetall.

The European Union has been supporting Ukraine in its military effort to combat Russia's invasion, amid uncertainty over the U.S.' long-term plans to back Kyiv.

Europe's "biggest need is artillery ammunition and missiles," Papperger said, stressing the new plant in Unterluess will focus on both

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