Rheinmetall AG and Pirochim Victoria, a subsidiary of Romanian state group Romarm, have signed an agreement to establish Rheinmetall Victoria SA, a joint venture that will build a propellant powder and modular propellant production facility in Victoria, Brasov County, Romania.
The signing took place in Bucharest in the presence of Rheinmetall CEO Armin Papperger and Romanian Prime Minister Ilie Bolojan. Rheinmetall will hold a 51% stake in the venture, with Pirochim Victoria owning the remaining 49%. Total investment for the planned powder plant exceeds €500 million.
The facility is expected to create around 700 jobs. Planned output includes roughly 300,000 modular propellant charges per year, which the companies estimate will require about 750 tonnes of propellant powder. In addition, the plant will produce some 200 tonnes of powder annually to satisfy local demand. Energy precursors such as nitrocellulose will also be manufactured on site.
Production of propellant powder and modular charges is scheduled to begin in 2028. Rheinmetall said the investment will strengthen its presence on NATO’s eastern flank and establish strategic manufacturing capabilities within Romania.
Armin Papperger, CEO of Rheinmetall AG, commented: “Propellant powder remains a strategic bottleneck within the defence industry. The new production facility in Romania is another step towards our goal of achieving an annual production capacity of 20,000 tonnes of propellant powder by 2030.”
The companies framed the project as addressing supply-chain vulnerabilities for munitions components while generating domestic industrial activity. No further commercial or financing details were disclosed in the announcement.