Rheinmetall launches joint venture for artillery ammunition production in Ukraine.

Rheinmetall, Europe's leading ammunition manufacturer, has announced a strategic partnership with a Ukrainian company to establish an artillery ammunition production facility in Ukraine. This collaboration was formalized through a memorandum of understanding (MoU) signed in the presence of the Ukrainian Minister for Strategic Industries, Alexander Kamyshin, at the Munich Security Conference.
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The joint venture, named "Ukrainian Competence Center for Ammunition," aims to produce over one hundred thousand 155 mm caliber shells annually. (Picture source: Rheinmetall)

The joint venture, named "Ukrainian Competence Center for Ammunition," aims to produce over one hundred thousand 155 mm caliber shells annually, along with their propellant charges. The initiative involves building a new plant, with Rheinmetall holding a 51% majority stake and the Ukrainian partner holding the remainder.

This announcement follows closely after Chancellor Scholz participated in the groundbreaking ceremony for a new Rheinmetall plant in Unterlüß, Lower Saxony. This facility is expected to start producing artillery ammunition among other components by 2025.

Armin Papperger, CEO of Rheinmetall AG, highlighted the critical demand for ammunition, especially in Ukraine, and the joint venture's role in strengthening Ukraine's defense capabilities and contributing to European security. Papperger expressed Rheinmetall's commitment to supporting Ukraine in rebuilding its defense industry and ensuring autonomy in ammunition production. He noted that Rheinmetall is already a key defense partner for Kyiv, working on several billion euros worth of projects for Ukraine.

The collaboration is part of Rheinmetall's broader commitment to Ukraine, following the establishment of another joint venture, Rheinmetall Ukrainian Defense Industry LLC, with Ukraine’s state-owned enterprise Ukrainian Defense Industry JSC (formerly Ukroboronprom) in October 2023. This earlier venture focuses on the maintenance and repair of combat vehicles, with plans to expand into the manufacturing of armored vehicles in Ukraine.

The production and supply of 155 mm artillery ammunition have become a priority for Ukraine and its allies due to the escalating need for ammunition in the conflict. The extended support from the United States, including the delivery of over 2 million artillery munitions since the beginning of Russia's full-scale invasion in 2022, has been a pillar in strengthening Ukrainian defenses and supporting counter-offensive operations. The United States, in particular, has taken significant steps to increase its production capacity of 155 mm artillery munitions, aiming to produce 100,000 projectiles per month by 2025, thus doubling its production from 30,000 projectiles per month since the start of the conflict.

Rheinmetall's expertise in defense technology and ammunition production is expected to significantly contribute to the success of these ventures, highlighting the company's role as a key player in global defense and security.