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Rheinmetall expands presence in Romania, bolstering support for Ukraine's defense

Rheinmetall expands presence in Romania, bolstering support for Ukraine's defense Illustrative photo (Photo: Getty Images)
Author: Daria Shekina

The German defense conglomerate Rheinmetall is acquiring a controlling stake in the Romanian automotive manufacturer Automecanica Mediaş. This move is expected to be beneficial, particularly for Ukraine, according to Rheinmetall's official page.

The number of orders will increase

Through Rheinmetall Landsysteme GmbH Group, it will own 72.5% of the shares of the company operating in Romania under the name Rheinmetall Automecanica SRL. The remaining shares of the company will stay in private hands. The contractual agreement, as before, requires approval from relevant government authorities before it becomes effective.

In the mid-term perspective, Rheinmetall estimates the annual sales potential of the newly acquired company to be around 300 million euros and expects the volume of orders received in the current fiscal year to be in the three-digit million euros.

Strengthening NATO

According to Rheinmetall's CEO Armin Papperger, the addition of Automecanica Mediaş to the Rheinmetall family signifies another important milestone in the strategy to strengthen the group's presence in Central Europe, thereby contributing to the reinforcement of the defense capabilities of the EU and NATO in Eastern Europe.

"We look forward to supporting Romania in future projects in the vehicle domain as well as with other Rheinmetall technologies. Here, the inclusion of local partners and strengthening the Romanian economy are matters of central concern to us. We want to meet the expectations of the Romania’s politicians and military in the best possible way," he said.

How it will help Ukraine

The factory in Mediaș is intended to play a key role in supporting the operational readiness of Western-produced combat vehicles in Ukraine, as well as providing logistical support.

Rheinmetall's presence in Romania means that forces deployed on NATO's eastern flank will be able to count on shorter response times and more reliable supply chains.

Rheinmetall's activities regarding Ukraine

It was previously reported that the German conglomerate Rheinmetall planned to launch its factory in Ukraine in 2024. The first weapons will be produced six months after the launch.

It has also recently been revealed that Rheinmetall will build a new factory in Germany for the production of ammunition. Projectiles will be supplied, including to Ukraine.