Rheinmetall Secures Major Contract for Ammunition Factory in Ukraine

Rheinmetall Secures Major Contract for Ammunition Factory in Ukraine

(IN BRIEF) Rheinmetall’s new contract for the construction and operation of an ammunition factory in Ukraine signifies a major development in the country’s defense and industrial capabilities. With a substantial investment and a strong partnership with local entities, Rheinmetall is poised to play a critical role in Ukraine’s re-industrialization and defense strategy.

(PRESS RELEASE) DÜSSELDORF, 24-Jul-2024 — /EuropaWire/ — Rheinmetall has been awarded a significant contract by the Ukrainian government for the construction and technical outfitting of an ammunition factory in Ukraine. This project, initially announced in February 2024, marks a pivotal step towards enhancing Ukraine’s defense capabilities and industrial base.

Key Details of the Project

Order Value and Timeline: The contract, valued in the low three-digit million-euro range, covers the comprehensive technical equipment required for the ammunition factory, including commissioning. The project is scheduled to begin shortly, with completion expected within 24 months.

Operational Responsibility: Rheinmetall, in collaboration with its Ukrainian joint venture partner, will not only oversee the construction but also manage the operation of the plant. This partnership aims to ensure efficient production and robust operational standards.

Strategic Importance and Statements

Armin Papperger, CEO of Rheinmetall AG: “We are putting our words into action and together with our partner, we will create a Ukrainian competence center for ammunition. The order underlines the confidence in Rheinmetall’s expertise and manufacturing capacities. We are grateful to be able to support the country in its re-industrialization and in strengthening its defense capability.”

Preparatory Measures and Joint Ventures

Infrastructure and Collaboration: Preparatory measures are already underway in Ukraine to establish the necessary infrastructure for the factory. A joint venture between Rheinmetall and a Ukrainian state-owned company will be formed to operate the plant. This initiative was highlighted during a side discussion at the Munich Security Conference in February 2024.

Strategic Cooperation Expansion: In June 2024, Armin Papperger and Oleksandr Kamyshin, Ukraine’s Minister for Strategic Industries, signed an agreement to expand strategic cooperation at the “Ukraine Recovery Conference” in Berlin. This agreement underscores the mutual commitment to bolstering Ukraine’s defense infrastructure.

Additional Developments

Armour Plant and Infantry Fighting Vehicles: Just days before the agreement, Rheinmetall and Ukrainian officials inaugurated an armor plant in western Ukraine, managed by the joint venture Rheinmetall Ukrainian Defence Industry LLC. The first Lynx Infantry Fighting Vehicle (IFV) from Rheinmetall is expected to be delivered to the Ukrainian armed forces by the end of this year, with local production set to commence shortly thereafter.

Media Contact:

Oliver Hoffmann
Head of Press and Public Relations
Phone: +49 211 473-4748
Fax: +49 211 473-4157

SOURCE: RHEINMETALL AG