Rheinmetall Supplies Equipment for a New Ammunition Factory in Ukraine.

Rheinmetall, the Düsseldorf-based technology group, has secured a significant order from the Ukrainian government for the construction of an ammunition factory. Announced in February 2024, this project marks the beginning of a major collaboration between Rheinmetall and Ukraine. The order includes all the necessary technical equipment for the factory, which will be operational within 24 months. The total value of the order is in the low hundreds of millions of euros and will be recorded as an incoming order at the beginning of the third quarter of 2024. The project is expected to start shortly and be completed within a few years. Rheinmetall, in partnership with its Ukrainian joint venture, will also manage the factory's operations.
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Rheinmetall also announced its intention to open several factories in Ukraine, including facilities for the production of tanks, ammunition, and air defense systems. (Picture source: Rheinmetall)

Armin Papperger, CEO of Rheinmetall AG, stated, "We are putting our words into action and, together with our partner, we will create a Ukrainian competence center for ammunition. This order underlines the confidence in Rheinmetall's expertise and production capabilities. We are grateful to support the country in its reindustrialization and the strengthening of its defense capability."

Preparations for the necessary infrastructure in Ukraine are underway. A joint venture between Rheinmetall and a Ukrainian state-owned company is being established to operate the ammunition plant. This initiative was first revealed during a side discussion at the Munich Security Conference in February 2024.

In June 2024, Armin Papperger and the Ukrainian Minister of Strategic Industries, Oleksandr Kamyshin, signed an agreement to strengthen strategic cooperation at the "Ukraine Recovery Conference" in Berlin. A few days earlier, they had inaugurated an armaments plant in western Ukraine, managed by the joint venture Rheinmetall Ukrainian Defense Industry LLC. The first Lynx infantry fighting vehicle from Rheinmetall is expected to be delivered to the Ukrainian armed forces by the end of this year, with local production planned to start quickly.

Rheinmetall also announced its intention to open several factories in Ukraine, including facilities for the production of tanks, ammunition, and air defense systems. This initiative is part of a broader strategy to increase production capacity to meet the growing demand for ammunition, exacerbated by the war in Ukraine and the rearmament needs of European countries. In 2023, Rheinmetall recorded orders worth 38.3 billion euros, up 44% from the previous year, and plans to increase its annual production capacity of shells to about 1.5 million by 2026.

Rheinmetall's support for Ukraine extends beyond the supply of ammunition. The company actively participates in programs for the maintenance and repair of combat vehicles and is involved in military equipment exchanges with partner countries to strengthen Ukraine's defense capabilities. In collaboration with the Dutch and Danish governments, Rheinmetall also supplies Leopard main battle tanks for the training of Ukrainian armed forces.

These initiatives demonstrate Rheinmetall's ongoing commitment to supporting Ukraine in its defense and reindustrialization efforts, by establishing critical infrastructure and enhancing local defense production capabilities.