German-based defense company Rheinmetall has announced its plans to open a new ammo production facility in Ukraine, as sealed by an agreement signed between the manufacturer and Ukraine, represented by the Minister of Strategic Industries Oleksandr Kamyshin and Ukrainian ambassador to Germany Oleksii Makeiev, during the ongoing Munich Security Conference 2024.
The deal provides for the establishment of a joint venture, with 51% of shares belonging to Rheinmetall, and 49% to the Ukrainian partner company. No other details provided, apart from the German company stating the new enterprise will be able to produce a "six-digit number" of 155mm artillery rounds annually.
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Currently, the Rheinmetall is one of the major suppliers of ammunition to the Ukrainian Armed Forces, the German concern receives contracts for the production of artillery- and mortar shells on a regular basis, sponsored by either Ukraine or its partners. The company actively ramps up its production rates to keep up with the demand, caused by the russian invasion: Rheinmetall expects to reach the tempo of 700,000 rounds made annually by 2025.
Earlier, Defense Express reported that Rheinmetall's project of building an ammunition plant in Hungary has entered its second phase. The new industrial branch will produce 155mm rounds for PzH 2000 howitzers, 120mm tank ammo for Leopard 2 MBTs (Panther MBTs in the future), and 35mm ammunition for Lynx IFVs.
A reminder, Rheinmetall also has another joint project with Ukraine, this one aiming to open a plant specialized in making armored vehicles, first a maintenance and repair center, later a full-geared factory for making ready-to-go new combat vehicles like Lynx and Fuchs, first units to appear as soon as mid-2024.
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