Ukraine signs memorandum with Rheinmetall on joint venture to produce ammunition
JV will produce six-figure quantities of 155 mm artillery rounds per year
Rheinmetall, Europe's largest ammunition manufacturer, is planning to open a new plant in Ukraine.
A memorandum of understanding for a joint venture between Rheinmetall and a Ukrainian partner was signed on Saturday, 17 February, on the sidelines of the Munich Security Conference in the presence of Ukraine's Minister of Strategic Industries Oleksandr Kamyshyn and Ukrainian Ambassador to Berlin Oleksiy Makeev.
Source. This was reported by Deutsche Welle.
The joint venture, called the Ukrainian Competence Centre for Ammunition, will produce a six-figure number of 155 mm artillery rounds per year, according to a press release from Rheinmetall. For this purpose, the partners are to build a new production facility in Ukraine, which will be operated jointly.
Rheinmetall will hold a 51% stake in the joint venture, while the Ukrainian partner, who has not yet been named, will hold 49%.
"The demand for artillery ammunition is huge in many countries – first and foremost, of course, in Ukraine," Rheinmetall CEO Armin Papperger said in a press release. – "The joint venture will make a significant contribution to strengthening Ukraine's defence capabilities and, consequently, security in Europe.
In October 2023, Rheinmetall already established its first joint venture with Ukraine's state-owned Ukroboronprom, which will be engaged in vehicle maintenance and repair and later in the production of armoured vehicles.
On 17 February, Ukroboronprom announced that it had also signed a memorandum of cooperation with German arms manufacturer Dynamit Nobel Defence, a subsidiary of the Israeli company Rafael.
On 12 February, German Chancellor Olaf Scholz laid the foundation stone for a new Rheinmetall plant in Unterluss, Lower Saxony, to produce shells for Ukraine with a production capacity of up to 200,000 artillery rounds per year.
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