Germany-based technology and defense group Rheinmetall on Wednesday has announced plans to build an ammunition factory in Ukraine.
The decision to construct the factory follows an order received from the Ukrainian government in February of this year, it said in a press release.
Accordingly, Rheinmetall will oversee the complete technical setup of the facility, from equipment installation to commissioning.
The project is valued in the low three-digit million-euro range and will be recorded as incoming orders in the third quarter of 2024.
The company aims to commence construction shortly and anticipates completion within a few years, with ammunition production slated to begin within 24 months in Ukraine. Rheinmetall, in collaboration with its Ukrainian joint venture partner, will also manage the plant's operations.
Armin Papperger, CEO of Rheinmetall AG 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-industrialization and in strengthening its defense capability.”
In Ukraine, efforts are underway to prepare the necessary infrastructure for the ammunition plant.
A joint venture between Rheinmetall and a Ukrainian state-owned company to operate the plant is in the final stages of establishment.
These developments were announced during a side-discussion at the Munich Security Conference in February 2024.
Further advancing their strategic cooperation, CEO Armin Papperger of Rheinmetall AG and Ukrainian Minister for Strategic Industries Oleksandr Kamyshin signed an agreement in June 2024 at the "Ukraine Recovery Conference" in Berlin.
A few days earlier, they inaugurated an armor plant in western Ukraine, operated by the joint venture Rheinmetall Ukrainian Defence Industry LLC.
Rheinmetall plans to deliver the first Lynx Infantry Fighting Vehicle (IFV) to the Ukrainian armed forces before the end of this year, with local production set to begin promptly.
