Ukraine’s Ukroboronprom, German Rheinmetall Establish Joint Venture 'RHEINMETALL UDI'

JV will be tasked with maintaining and producing military equipment
  • Defensemirror.com Bureau
  • 07:15 AM, October 25, 2023
  • 390
Ukraine’s Ukroboronprom, German Rheinmetall Establish Joint Venture 'RHEINMETALL UDI'
Ukraine’s Ukroboronprom, German Rheinmetall Establish Joint Venture 'RHEINMETALL UDI'

Ukraine's Defense Industry (UDI), formerly known as Ukroboronprom, has entered into a significant joint venture with Germany's Rheinmetall AG, resulting in the establishment of "Rheinmetall Ukrainian Defense Industry LLC" to jointly maintain and produce military equipment.

This partnership was officially registered on October 18, 2023, and Ukraine's Prime Minister, Denys Shmyhal, made the announcement during the German-Ukrainian Business Forum in Berlin, where Germany's Federal Chancellor, Olaf Scholz, was also present.

Notably, this marks UDI's first-ever joint venture with foreign partners. The collaboration centers on maintaining and repairing armored vehicles supplied by Rheinmetall to Ukraine, with plans to expand into joint production of Rheinmetall products on Ukrainian soil and the development of military equipment.

Herman Smetanin, Director General of UDI, expressed gratitude to the German partners and the crucial role played by various Ukrainian government entities in facilitating this cooperation. This partnership is a key opportunity arising from UDI's transformation into the Ukrainian Defense Industry Joint Stock Company on June 28, 2023.

Rheinmetall Ukrainian Defense Industry LLC, a technology enterprise, will initially focus on service, maintenance, assembly, production, and the development of military vehicles exclusively within Ukraine. Germany's Federal Cartel Office confirmed no competition concerns in Germany.

The strategic collaboration between Rheinmetall and Ukraine's defense sector began in May 2023. Regulatory approvals were secured from Germany's Federal Cartel Office, as well as relevant agencies in Poland and Ukraine in September and early October 2023. This paved the way for the official registration and launch of Rheinmetall Ukrainian Defense Industry.

The collaboration includes the service and maintenance of military vehicles supplied to Ukraine and plans to expand into joint production of selected Rheinmetall products on Ukrainian territory.

Ukrainian Defense Industry JSC, formerly known as Ukroboronprom, is a state-owned enterprise with 67,000 employees engaged in the production and maintenance of armored vehicles, missiles, artillery, radar, and aircraft. It has played a crucial role in supporting Ukraine's defense efforts since the onset of the Russian invasion.

Ukraine’s Ukroboronprom, German Rheinmetall Establish Joint Venture 'RHEINMETALL UDI'
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