Rheinmetall to build ammunition factory in Ukraine

According to the report, the order covers the full technical equipment of the plant before commissioning. The cost of the plant will vary in the three-digit million euro range.

Construction is expected to start in a short time and be completed within a few years. The intention is to start producing ammunition in Ukraine within 24 months. Together with its Ukrainian joint venture partner, Rheinmetall will also be responsible for the operation of the plant.

Armin Papperger, CEO of Rheinmetall, said: “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.”

New plant

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

In June 2024, Rheinmetall AG CEO Armin Papperger and Ukraine's Minister of Strategic Industries Oleksandr Kamyshyn signed an agreement to expand strategic cooperation at the Ukraine Recovery Conference in Berlin.

Earlier, they inaugurated an armored vehicle plant in the West of Ukraine, operated by Rheinmetall's joint venture Ukrainian Defense Industry LLC. Rheinmetall's first Lynx infantry fighting vehicle is to be delivered to the Ukrainian armed forces by the end of this year, with local production set to start as soon as possible.