At the Munich Security Conference 2024, an agreement was signed that defines the plans of the German defense giant Rheinmetall to open a plant for the production of artillery ammunition in Ukraine. At the time, there was talk of creating a joint venture (51%/49%), and it was also reported that the annual production rate should be six-digit numbers of 155 mm artillery shells yearly, including propelling charges.
The enterprise for the production of artillery ammunition will become the most important among all three enterprises that Rheinmetall plans to open in Ukraine (along with the enterprise for the repair and production of air defense equipment, as well as the workshop for the repair and assembly of armored vehicles).
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Representatives of Rheinmetall told the Ukrainian publication "Economichna Pravda" about this.

So far, Rheinmetall has not announced the exact amount of ammunition planned to be manufactured in the future at the new plant in Ukraine. However, the German company once again emphasizes that it is a six-digit figure for the amount of ammunition that will be produced in Ukraine yearly. Rheinmetall also emphasizes that the most scarce component for ammunition - propelling charges - will be manufactured in Ukraine.
As Deputy Minister for Strategic Industries of Ukraine Serhiy Boev told the publication, work on agreements on a joint venture is currently underway, and the equipment necessary for the organization of production is also being purchased. Rheinmetall's further plans include the beginning of the process of building a plant, developing infrastructure and, eventually, the production of ammunition.
It should be noted that in this case we may be talking about a project that will be implemented in the medium term. In particular, Serhii Boev emphasizes that, as a rule, the implementation of such programs lasts three to four years. "But we will try to speed up the terms," the Deputy Minister for Strategic Industries of Ukraine. According to him, such a plant is important for Ukraine noted. As the the official notes, it will reduce the dependence of the Ukrainian military on the import of 155-mm artillery ammunition.
The Rheinmetall in its presentation for investors directly notes that it should become "number 1" for the Ukrainian army. General Director of Rheinmetall Armin Papperger estimates the potential of the Ukrainian market at 2-3 billion dollars per year.

Currently, the German giant is one of the largest manufacturers of artillery ammunition in the world. In particular, the other day, Rheinmetall signed the largest contract in its history for 8.5 billion dollars for the production of 155-mm shells. The company has plans to reach production rates of 700,000 ammunition per year next year, and it is expected to increase production rates to 1.1 million shells per year.
Defense Express previously reported, that the Armed Forces of Ukraine would receive prototypes of 100 km artillery ammunition by Rheinmetall. As of today, the most long-range ammunition that Ukraine received as part of Germany’s defense aid is Vulcano High-precision projectiles which have a range of 70 km.
Read more: Ukrainian Troops Have Unguided Vulcano Shells, But There Should Be an Even More Advanced Option With a Range of 70 km