Rheinmetall Acquires Majority Stake in Romanian Vehicle Maker, Automecanica Medias

The Romanian plant is set to play a vital role in supporting Western combat vehicles in Ukraine and ensuring logistical readiness.
  • Defensemirror.com bureau
  • 09:55 AM, February 1, 2024
  • 484
Rheinmetall Acquires Majority Stake in Romanian Vehicle Maker, Automecanica Medias

Rheinmetall is set to acquire a 72.5% majority holding in Automecanica Mediaș, a Romanian vehicle maker, as part of its ongoing expansion in Central Europe.

The newly formed company, named "Rheinmetall Automecanica," will be integrated into Rheinmetall's global production network.

The move is seen as a strategic step to deepen Rheinmetall's presence in Romania, particularly in the manufacturing of military vehicles. This acquisition follows Romania's award of a €328 million air defense order to Rheinmetall in December 2023.

Through Rheinmetall Landsysteme GmbH, the Group aims to strengthen its position in Central Europe and tap into potential sales in the region. Rheinmetall already has a presence in Hungary and Lithuania, and this latest acquisition further expands its footprint.

Rheinmetall estimates the annual sales potential of the acquired company to be around €300 million in the medium term. The Group anticipates incoming orders in the current financial year to be in the three-digit million-euro range.

The Romanian plant in Mediaș is expected to play a crucial role in maintaining the operational readiness of Western-built combat vehicles in Ukraine and providing logistical support. Rheinmetall's presence in Romania aims to enhance response times and supply chains for forces deployed on NATO's eastern flank.

The acquisition is part of Rheinmetall's broader strategy to strengthen its global vehicle production network, adding to its existing plants in the United States, Canada, Australia, the United Kingdom, Austria, the Netherlands, and Germany. Rheinmetall seeks to expand its portfolio of military vehicles by incorporating Automecanica's expertise in truck build-ons, trailers, and other special vehicles.

Automecanica Mediaș, known for producing special vehicles for both civilian and military markets, has been a longstanding partner of Rheinmetall since their collaboration began in 2022. The two companies previously operated a maintenance and repair facility for military vehicles in Satu Mare, Romania.

Looking ahead, Rheinmetall plans to maintain and modernize the chassis of antiaircraft systems belonging to the Romanian military through the newly acquired Romanian plant.

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