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.
Major deliveries of military material and extensive logistical support make Rheinmetall Ukraine's most important defence industry partner in the fight against Russian aggression. The company and Ukraine, represented by the Minister for Strategic Industries, Oleksandr Kamyshin, signed a memorandum of understanding to expand their strategic cooperation during the "Ukraine Recovery Conference 2024" in Berlin. The agreement aims to identify and develop further areas for closer cooperation between the Ukrainian defense industry and the Düsseldorf-based technology group.
Specific projects in the pipeline include the manufacture of artillery ammunition and the supply and production of Lynx infantry fighting vehicles. In addition to possible direct deliveries by Rheinmetall, the (re)industrialisation of national manufacturing know-how is also intended to make a significant contribution to Ukraine's sustainable defence capability as part of the cooperation. Rheinmetall had already founded the joint venture Rheinmetall Ukrainian Defence Industry LLC with a Ukrainian state-owned company in October 2023. Ukrainian specialists were trained in Germany in the maintenance and repair of combat vehicles and have already been working on the corresponding systems in Ukraine for some time. In June 2024, the maintenance hub in western Ukraine was officially opened under the umbrella of the joint venture in the presence of high-ranking political representatives. The aim is to be an effective partner for Ukraine in rebuilding the once strong defence industry in Ukraine and ensuring the autonomy of Ukrainian capacities.
