Update: Rheinmetall to Open Ammunition Plant in Ukraine

• Joint Venture Announcement: Rheinmetall and a Ukrainian partner to establish an ammunition production facility.
• Production Capabilities: The new plant aims to produce a significant volume of 155mm caliber ammunition.

Munich, Germany — Rheinmetall, Europe’s largest ammunition maker, announced on the sidelines of the Munich Security Conference their plans to expand operations into Ukraine. This strategic decision involves setting up a new facility dedicated to producing artillery ammunition, in partnership with a Ukrainian company.

Rheinmetall is the world’s largest producer of artillery ammunition and listed in Germany’s blue-chip stock exchange index DAX. Since hitting a low of around 230 Euro at the beginning of October 2023, the stock more than doubled its value.

The memorandum of understanding for this joint venture was signed in the presence of Ukrainian Minister for Strategic Industries, Alexander Kamyshin, highlighting the significance of this initiative in the current global defense landscape.

“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”, declares Armin Papperger, chairman of the executive board of Rheinmetall AG.

The “Ukrainian Competence Center for Ammunition” will focus on manufacturing 155mm caliber bullets, including the necessary propelling charges. This development follows the recent ground-breaking ceremony for a new plant in Unterlüß, Lower Saxony, attended by Chancellor Scholz, which is also set to produce artillery ammunition starting in 2025. The establishment of these facilities underscores Rheinmetall’s commitment to enhancing supply security and meeting the increasing demand for military ammunition.

In October 2023, Rheinmetall AG and Ukraine’s state-owned enterprise Ukrainian Defense Industry JSC (UDI, the former Ukroboronprom) formed “a first joint venture in Kyiv”, Rheinmetall said. It is called Rheinmetall Ukrainian Defense Industry LLC. The new company also maintain and repairs combat vehicles. Armored vehicles will also be built in Ukraine, the DAX company said.