The Ukrainian government has contracted Rheinmetall to build a munitions factory in the country.
The low three-digit million euro contract covers the technical equipment for the factory through to commissioning.
Rheinmetall will be responsible for operating the plant along with its Ukrainian partner, whose identity has not been revealed for security reasons.
The plant’s location has also not been disclosed.
Production in 24 Months
A joint venture between Rheinmetall and the state-run Ukrainian firm will be established, with production expected to commence within 24 months.
Measures are also being taken to create the necessary infrastructure for the company.
“We are putting our words into action and together with our partner we will create a Ukrainian competence center for ammunition,” Rheinmetall CEO Armin Papperger said.
“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-industrialisation and in strengthening its defense capability.”
Additional Ventures
This is the second Rheinmetall venture in Ukraine after a contract was signed in October with state-run UDI to repair military vehicles in the country.
The Dusseldorf-based firm is also planning to establish a joint venture to produce and repair air defense systems in Ukraine.