German defense industry giant Rheinmetall continues to integrate deeper into Ukraine with production projects and has officially announced the receipt of a firm order to construct an ammunition production plant in Ukraine.
Rheinmetall's task is to "complete technical equipment of the factory through to commissioning." Also, German gunsmiths will be responsible for operating the plant, which will be a joint venture. As known from earlier statements, 51% of it will belong to Rheinmetall itself, and the rest to the Ukrainian government.
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The company specified the timeline of project implementation: in 24 months, serial production of ammunition will commence at the new factory. The value of this project, as noted, "is in a low three-digit million euro range," i.e. up to €300,000.
The intent to establish an ammunition plant in Ukraine was announced at the Munich Security Conference in February 2024, sealed by an official agreement between Ukrainian authorities and Rheinmetall. Among the products manufactured at the new enterprise will be large-caliber artillery ammunition, with a yearly output of a six-digit number of 155mm shells and propellant charges.
As a reminder, this is not the only project Rheinmetall is setting up in Ukraine. The company also earlier opened the first repair and production site jointly with the Ukrainian Defense Industry JSC, where Marder infantry fighting vehicles are repaired. The repair center will later be upgraded to an assembly plant for the production of Lynx, Rheinmetall's latest infantry fighting vehicle; the IFV is expected to be rolled off the workshops by the end of 2024. Similarly, there are plans for making the Fuchs armored personnel carrier.
Additionally, the German arms manufacturer is looking to produce air defense systems in Ukraine. Among the assets Rheinmetall offers in this domain are the advanced Skynex networked air defense system and components of the NNbS air defense system, currently in development.
Overall, this German manufacturer so far demonstrates commitment to the goal that the company had enshrined in its development strategy: to become the first option for the armed forces of Ukraine.
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