The Ukraine war has boosted Germany’s weapons industry as countries seek to re-arm in the face of the growing threat from Russia, and soaring demand last year propelled Rheinmetall onto the blue-chip DAX index.
Rheinmetall reported record sales of €7.2 billion last year, and is aiming to top €10 billion in 2024.
The company said the factories in Ukraine would be for producing shells, military vehicles, gunpowder, and anti-aircraft weapons.
“Ukraine is now an important partner for us, where we see a potential of between €2-3bn [in sales] per year,” Rheinmetall CEO Armin Papperger said at the presentation of the company’s 2023 results.
It is reported that the first stone will soon be laid for the construction of the vault in Ukraine, and it will be modeled on an ammunition factory that Rheinmetall is building in Germany.
Militarnyi reported on the company’s plans to build an ammunition plant in Ukraine on February 17.
The document on cooperation was signed in the presence of Oleksandr Kamyshyn, Minister of Strategic Industries of Ukraine, and Oleksii Makeiev, Ambassador of Ukraine to Germany, on the sidelines of the Munich Security Conference.
The signing of agreements on a joint plant with Rheinmetall in Ukraine to produce ammunition. February 17, 2024. Photo credits: Rheinmetall
It is planned that the new ammunition plant will produce a six-figure number of 155mm artillery shells per year. The joint venture will also produce metal charges.
The German concern Rheinmetall will own 51% of the shares in the joint plant, and the Ukrainian company will own 49%.
In early February, the German concern Rheinmetall announced that it intends to supply the Armed Forces of Ukraine with medium and large caliber ammunition, in particular, 20mm for the Marder IFV, 40mm, and 105mm for the Leopard 1, and 120mm for the Leopard 2 tanks.
