Rheinmetall Secures Major Contract to Build Munitions Factory in Ukraine

German defense conglomerate Rheinmetall has officially secured an order from Ukraine to build a munitions factory, as reported by Rheinmetall’s press service.

The announcement follows Rheinmetall’s earlier disclosure in February about plans to construct the factory, with construction expected to commence shortly and completion scheduled over the next few years. Rheinmetall, in partnership with a Ukrainian joint venture, will manage the operational aspects of the facility. While the exact financial details of the contract were not disclosed, Rheinmetall confirmed that it exceeds €100 million.Production of munitions at the Ukrainian plant is projected to begin within 24 months.

“This order demonstrates confidence in Rheinmetall’s experience and production capabilities. We appreciate the opportunity to support the country in its industrialization and defense strengthening efforts,” commented Armin Papperger, CEO of Rheinmetall AG.

Currently, preparations are underway in Ukraine to establish the necessary infrastructure for the factory. The expansion of Rheinmetall’s strategic partnership with Ukraine was solidified during the “Ukraine Renewal Conference” in Berlin, where a cooperation agreement was signed between Armin Papperger and Ukraine’s Minister of Strategic Industries, Oleksandr Kamishin.

Earlier in June, a joint venture between Ukraine and Rheinmetall launched its first armored vehicle repair and manufacturing workshop. Additionally, plans were announced in March by Armin Papperger to establish a minimum of four factories in Ukraine.