Rheinmetall and Ukroboronprom establish a JV for repairing and building tanks

Rheinmetall and Ukroboronprom establish a JV for repairing and building tanks

The Ukroboronprom State Concern and the German defense concern Rheinmetall have created a joint venture for tank repair in Ukraine

The German concern Rheinmetall and Ukraine’s state-owned Ukroboronprom have reached a strategic cooperation agreement. The press service of Rheinmetall reported on this.

Cooperation between the two organizations is intended at strengthening Ukraine’s defense industry and, ultimately, its national security.

According to the press release, joint defense enterprises will be established in stages and located in Ukraine.

Within this agreement, Ukraine will benefit from a comprehensive transfer of technology, the creation of additional defense technology capacities, and the short-term delivery of military equipment from Germany.

To begin with, a joint venture, subject to official approval, will be developed to serve as a bridge between Rheinmetall and Ukraine’s existing state-owned defense enterprises.

Final approval of the arrangements is scheduled for late June 2023, and the joint venture is expected to be operational from mid-July 2023.

First, maintenance and repair of military equipment transferred to Ukraine will be set up. In the later stages, the parties intend to jointly produce selected samples of weapons from Rheinmetall in Ukraine based on the comprehensive transfer of technologies.

Previously, Armin Papperger, Rheinmetall CEO, announced the plan to establish a joint venture to repair tanks in Ukraine, and in the future, the production of combat vehicles will also be established. Rheinmetall will hold a majority stake of 51% in the new company and will supply the management. In addition, in the coming days, the German company expects to sign contracts for two more joint ventures for ammunition and air defense.

“Meeting Ukraine’s urgent needs in its fight for freedom and democracy as quickly as possible is a matter of central importance to us at Rheinmetall. Thanks to its expertise and capabilities, Rheinmetall has what it takes to be a valuable and powerful partner to Ukraine both in the short term and in the long run,” Armin Papperger emphasized.

Looking ahead, cooperation between Rheinmetall and Ukroboronprom could also involve the joint development of military systems by teams of Ukrainian and German specialists, including for subsequent export from Ukraine.

“I am honored to set up the joint venture between Rheinmetall, one of the world’s leading manufacturers in the defense industry, and the leading full-scale operating Ukrainian defense producer, which increased the production of military equipment and armored vehicles despite numerous Russian missiles attacks,” Yuriy Husyev, Chief Executive Officer at Ukroboronprom.

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