German defense conglomerate Rheinmetall to open ammunition factory in Ukraine
Europe's largest ammunition manufacturer, the German defence group Rheinmetall, plans to open a new factory in Ukraine. A memorandum of understanding to create a joint venture between Rheinmetall and a Ukrainian partner was signed on Saturday, 17 February, on the sidelines of the Munich Security Conference, in the presence of Ukraine's Minister for Strategic Industries Oleksandr Myronyuk and Ukrainian Ambassador to Germany Oleksii Makeiev.
The joint venture, named the "Ukrainian Competence Center for Ammunition," aims to produce a six-figure number of 155 mm artillery shells annually, according to a Rheinmetall press release. The partners are set to build a new manufacturing facility in Ukraine to be operated jointly. Rheinmetall will own 51 percent of the shares of the joint venture, while the name of the Ukrainian partner, holding the remaining 49 percent, has not yet been disclosed.
"The demand for artillery ammunition is huge in many countries – with Ukraine, of course, being first in line," the Rheinmetall chief executive Armin Papperger is quoted as saying in the press release. "The joint venture will make a significant contribution to strengthening Ukraine's defence capabilities, and hence security in Europe."
Back in October 2023, Rheinmetall already established its first joint venture with the Ukrainian state defence conglomerate Ukroboronprom, which is set to handle maintenance and repair of vehicles, and later on, the production of armored vehicles.
On 17 February, Ukroboronprom announced that it had also signed a cooperation memorandum with the German weapons manufacturer Dynamit Nobel Defence, a subsidiary of the Israeli company Rafael.
On 12 February, German Chancellor Olaf Scholz laid the cornerstone for a new Rheinmetall artillery ammunition factory in Unterlüß, Lower Saxony, which will have a production capacity of up to 200,000 artillery rounds per year for Ukraine.