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Ammunition factory to be built in the Ukraine

Rheinmetall receives order to deliver a production line

Rheinmetall has now received its first important order from the Ukrainian government for the construction of an ammunition factory in the Ukraine, which was announced in February 2024, and marks the starting point for the realisation of the project. The order for the Duesseldorf-based technology group Rheinmetall covers the complete technical equipment of the factory through to commissioning. This involves a total value ranged in a low three-digit million euro range, which will be booked as incoming order at the start of the third quarter of 2024. It is foreseen to begin in short term and to be completed within a few years. The intention is to start the ammunition production in the Ukraine within 24 months. Together with its Ukrainian joint venture partner, Rheinmetall will also be responsible for operating the plant.

Armin Papperger, CEO of Rheinmetall AG: “We are putting our words into action and together with our partner we will create a Ukrainian competence centre for ammunition. 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 defence capability”.

Measures are currently being taken in the Ukraine to prepare the necessary infrastructure. A joint venture between Rheinmetall and a Ukrainian state-owned company in operating the ammunition plant is about to be established. This was announced at a side-discussion at the Munich Security Conference in February 2024.

In June 2024, the CEO of Rheinmetall AG, Armin Papperger, and the Ukrainian Minister for Strategic Industries, Oleksandr Kamyshin, signed an agreement to expand the strategic cooperation at the “Ukraine Recovery Conference” in Berlin. A few days earlier, they opened an armour plant in western Ukraine, which is operated by the joint venture Rheinmetall Ukrainian Defence Industry LLC. The first Lynx Infantry Fighting Vehicle (IFV) from Rheinmetall is to be handed over to the Ukrainian armed forces before the end of this year, and local production is to commence as soon as possible.

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