Nitroguanidine expansion for AlzChem

AlzChem plans to “significantly increase” its nitroguanidine capacity, with a new production plant that will almost double the €76 million expansion it announced in the spring. It will also renew and expand its existing facilities for the precursor, guanidine nitrate, in what CEO Andreas Niedermaier called “the largest investment in our company’s history in Germany to date”.

These additions are expected to be commissioned in 2H 2026 and to “result in increasing revenues in the upper double-digit million range from 2027 onwards, with correspondingly positive contributions to earnings”. Supply contracts have already been signed with several customers in the defence sector, who are willing to help finance the new plant.

In parallel to the measures in Germany, Alzchem will intensify its site search in the US. It has concluded a preliminary contract with the US Department of Defence, which has already committed $150 million in funding for the construction of a facility in the US by the end of 2029 if a suitable site is found within two years. In addition to defence, nitroguanidine is used in plant protection and as a propellant for airbags.