Rheinmetall to invest €270 million as Germany's Kassel becomes key tank hub

BERLIN, Aug 27 (Reuters) - Defence company Rheinmetall will test drones, expand tank production and build a new logistics centre in the central German city of Kassel, investing about €270 million ($314.31 million) in the projects, Chief Executive Armin Papperger said on Thursday.

• "Kassel will become the largest tank factory in Europe", Papperger said, adding the workforce there is set to grow to 3,500 employees from around 2,200 currently.

• The logistics centre is scheduled to begin operations at the end of 2027.

• Rheinmetall also plans to establish a drone testing centre at the site.

• The Kassel plant plays a key role in Rheinmetall's production of armoured vehicles, including the Boxer wheeled armoured vehicle.

• The state premier for Hesse, which encompasses Kassel, Boris Rhein, said the state would contribute about €25 million.

($1 = 0.8590 euros)

(Reporting by Timm Reichert und Matthias Inverard, Writing by Cian Muenster, Editing by Miranda Murray)