Rheinmetall to Establish Joint Venture for Artillery Ammunition Production in Ukraine
Rheinmetall, Europe’s leading ammunition manufacturer, is embarking on a joint venture initiative to establish a new artillery ammunition production plant in Ukraine. The company has signed a memorandum of understanding (MoU) with a Ukrainian partner during the Munich Security Conference, in the presence of Alexander Kamyshin, the Ukrainian Minister for Strategic Industries.
The proposed “Ukrainian Competence Center for Ammunition” aims to annually produce a significant quantity of 155mm calibre bullets, along with corresponding propelling charges. Rheinmetall plans to hold a majority stake of 51% in the joint venture, with the remaining 49% owned by the Ukrainian partner.
This strategic move underscores Rheinmetall’s commitment to supporting Ukraine’s defence capabilities and enhancing security in Europe. Armin Papperger, Chairman of the Executive Board of Rheinmetall AG, emphasized the importance of this joint venture in bolstering Ukraine’s ability to defend itself.
Mr Papperger stated, “We want to be an effective partner of Ukraine, to help rebuild the country’s once-powerful defence industry, and to assure Ukrainian autonomy in ammunition production.” Rheinmetall views this initiative as a vital step towards reinforcing Ukraine’s defence industry and ensuring its self-sufficiency in ammunition production.
Rheinmetall’s expertise in defence technology and ammunition production, coupled with its proven track record in establishing and operating manufacturing facilities, positions the company as an ideal partner for this venture. This collaboration builds on the foundation laid by the establishment of Rheinmetall Ukrainian Defense Industry LLC in Kyiv in October 2023, focusing initially on combat vehicle maintenance and repair, with plans to expand into armoured vehicle production.
The joint venture initiative is a testament to Rheinmetall’s commitment to strengthening Ukraine’s defence capabilities and fostering strategic partnerships in the region.