Rheinmetall to Build Ammo Plant in Ukraine

The German arms manufacturer, Rheinmetall, stated that it received Kyiv’s first official order to build an ammunition plant in Ukraine.

The company announced in March that it plans to set up at least four factories in Ukraine.

Construction will begin “in short term” and be completed “within a few years,” but the intention is to begin making ammunition in two years, Rheinmetall’s press release says.

“We are putting our words into action and together with our partner we will create a Ukrainian competence center for ammunition,” General Director Armin Papperger is quoted. “The order underlines the confidence in Rheinmetall’s expertise and manufacturing capacities. We are grateful to be able to support the country in its re-industrialization and in strengthening its defense capability.”

The cost of the ammo plant could be “ranged in a low three-digit million euro range,” Rheinmetall states in its press release. It’s not clear whether this means around €100 million or something between €100 million - €500 million, and the company’s press service could not be reached at the time of publication for clarification.

Rheinmetall will be responsible for operating the plant, its statement says.

Last month, the CEO of Rheinmetall AG, Armin Papperger, and the Ukrainian Minister for Strategic Industries, Oleksandr Kamyshin, signed an agreement to expand the strategic cooperation at the “Ukraine Recovery Conference” in Berlin.

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“The first Lynx Infantry Fighting Vehicle (IFV) from Rheinmetall is to be handed over to the Ukrainian armed forces before the end of this year, and local production is to commence as soon as possible,” the press release says.