Rheinmetall Plans to Open Ammunition Factory in Ukraine
Rheinmetall to Open Ammunition Factory in Ukraine
German defence company Rheinmetall has announced plans to open an ammunition factory in Ukraine as part of a joint venture with a Ukrainian partner. This move comes as Ukraine faces acute shortages of ammunition following Russia’s 2022 invasion.
Ramping up Production
Rheinmetall, known as one of the world’s biggest producers of artillery and tank shells, has started ramping up production to support Ukraine. The country’s troops have recently been forced to withdraw from the devastated eastern town of Avdiivka.
Memorandum of Understanding
The German company signed a memorandum of understanding at the Munich Security Conference to build and jointly operate the new factory with a Ukrainian partner, whose name has not been disclosed.
Production Details
The new factory in Ukraine is set to produce a substantial number of 155mm calibre bullets annually. Rheinmetall will hold a 51% stake in the joint venture, with the remaining 49% held by the Ukrainian partner.
Existing Ventures
Rheinmetall is already involved in a joint venture in Ukraine to service and repair Western weapons sent to aid Ukraine in defending itself against Russia. Additionally, the company has plans to manufacture armoured vehicles in Ukraine.
