Rheinmetall Plans to Open Ammunition Factory in Ukraine
German Defence Company’s Partnership with Ukrainian Partner
Rheinmetall has announced its plans to open an ammunition factory in Ukraine in a joint venture with a Ukrainian partner. The move comes as the company aims to support Ukraine, which has faced acute shortages of ammunition following Russia’s 2022 invasion.
Ramping Up Production After Russia’s Invasion
Following Russia’s invasion of Ukraine in 2022, Rheinmetall, a leading producer of artillery and tank shells, has been working to ramp up production. The recent events in Ukraine have highlighted the urgent need for ammunition, with the country’s troops facing significant challenges.
Memorandum Signed at Munich Security Conference
Rheinmetall signed a memorandum of understanding at the Munich Security Conference to establish the new factory. The company aims to build and operate the facility in collaboration with its Ukrainian partner, with a focus on producing 155mm calibre bullets.
Ownership Structure of the New Company
The new factory in Ukraine will be a joint venture, with Rheinmetall holding a 51% stake in the company, while the remaining 49% will be owned by the Ukrainian partner. This partnership reflects the commitment of both parties to support Ukraine’s defence capabilities.
Expansion of Rheinmetall’s Presence in Ukraine
This latest initiative is part of Rheinmetall’s broader involvement in Ukraine, which includes the servicing and repair of Western weapons sent to support the country’s defence efforts. Additionally, the company plans to expand its operations by building armoured vehicles in Ukraine, further strengthening its presence in the region.
