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​Rheinmetall and Ukrainian Partner Forge Alliance for Ammunition Manufacturing

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The DM121 shells / Photo credit: Rheinmetall
The DM121 shells / Photo credit: Rheinmetall

Collaboration between Europe’s largest ammunition maker and Ukrainian partners signifies a pivotal step towards bolstering Ukraine’s defense capabilities and enhancing regional security

Europe’s leading ammunition manufacturer, Rheinmetall, is set to expand its operations with a new plant in Ukraine. Teaming up with a local Ukrainian company, they’ve inked a memorandum of understanding (MoU) to establish a joint venture focused on ammunition production. The MoU was signed in the presence of Alexander Kamyshin, the Ukrainian Minister for Strategic Industries, during the Munich Security Conference.

The Ukrainian Competence Center for Ammunition is to produce a six-digit number of 155mm calibre bullets per year in the future, including the corresponding propelling charges. This ambitious goal entails the construction and collaborative management of a new production facility. Rheinmetall will hold a 51 percent stake in the venture, with the remaining 49 percent owned by the Ukrainian partner.

Read more: ​German Rheinmetall Promises to Make Six-Digit Numbers of Artillery Shells Yearly at the New Factory in Ukraine
Collaboration between Europe’s largest ammunition maker and Ukrainian partners signifies a pivotal step towards bolstering Ukraine’s defense capabilities and enhancing regional security Defense Express Rheinmetall and Ukrainian Partner Forge Alliance for Ammunition Manufacturing
Collaboration between Europe’s largest ammunition maker and Ukrainian partners signifies a pivotal step towards bolstering Ukraine’s defense capabilities and enhancing regional security / Photo credit: Rheinmetall

Simultaneously, Chancellor Olaf Scholz participated in the groundbreaking ceremony for a new facility in Unterlüß, Lower Saxony, February 12. Scheduled to commence artillery ammunition production in 2025, the facility will also manufacture explosives and rocket artillery components.

“Demand for ammunition in many countries is enormous – first and foremost in Ukraine, of course. Our intention of establishing another joint venture underscores our support for Ukraine. This joint venture will make a vital contribution to the country’s ability to defend itself – and thus to the security of all Europe”, Armin Papperger, chairman of the executive board of Rheinmetall AG, said.

Armin Papperger highlights Rheinmetall’s dedication to becoming a cornerstone partner for Ukraine’s defense industry, aiding in its reconstruction and fostering autonomy in ammunition production. With numerous projects worth billions of euros already underway, Rheinmetall is deeply entrenched as Kyiv’s key defense industry collaborator.

Having established a prior joint venture in Kyiv with Ukraine’s state-owned enterprise Ukrainian Defense Industry JSC, Rheinmetall has laid the groundwork for broader cooperation. Initially focused on combat vehicle maintenance and repair, the partnership is poised to expand into armored vehicle production, further solidifying Rheinmetall’s commitment to Ukraine’s defense sector.

Read more: ​Rheinmetall Acquires Majority Stake in Romanian Company: a Strategic Move in Defense Expansion