Rheinmetall received the first major order from the Ukrainian government to build an ammunition factory in Ukraine, announced in February 2024, marking the start of the project's realization. The order for the Düsseldorf technology group Rheinmetall covers the entire technical equipment of the factory up to its commissioning. This is an overall value in the order of hundreds of millions of euros, which will be registered as an incoming order at the beginning of the third quarter of 2024. The project is expected to start in the short term and be completed within a few years, with plans to start ammunition production in Ukraine within 24 months. Together with the Ukrainian joint venture partner, Rheinmetall will also be responsible for operating the plant.
Armin Papperger, CEO of Rheinmetall AG: “We are translating words into actions and, together with our partner, we will create a Ukrainian competence center for ammunition. The order underlines the confidence in Rheinmetall's expertise and manufacturing capabilities. We are grateful to be able to support the country in its reindustrialization and in strengthening its defense capacity."
Measures are currently underway in Ukraine to prepare the necessary infrastructure. A joint venture between Rheinmetall and a Ukrainian state company is in the process of being established to operate the munitions factory. This was announced during a discussion on the sidelines of the Munich Security Conference in February 2024.
In June 2024, Rheinmetall AG CEO Armin Papperger and Ukrainian Minister for Strategic Industries Oleksandr Kamyshin signed an agreement to expand strategic cooperation at the “Conference on the Reconstruction of Ukraine” in Berlin. A few days earlier, they had inaugurated an armaments factory in western Ukraine, operated by the joint venture Rheinmetall Ukrainian Defense Industry LLC.
The first Infantry Combat Vehicle Lynx from Rheinmetall will be delivered to the Ukrainian Armed Forces later this year and local production will begin as soon as possible.
