Rheinmetall Secures Contract to Build Ammunition Factory in Ukraine

Rheinmetall has received its first order from the Ukrainian government for constructing an ammunition factory, following an announcement in February 2024.

This marks the project's starting point, as the company will supply the complete technical equipment for the factory through to commissioning. The order is valued in the low three-digit million-euro range and will be recorded as an incoming order at the start of the third quarter of 2024.

The project is set to begin shortly, with plans to complete the facility within a few years and commence ammunition production in Ukraine within 24 months. Rheinmetall, alongside its Ukrainian joint venture partner, will also be responsible for operating the plant.

Preparations are underway in Ukraine to establish the necessary infrastructure. A joint venture with a Ukrainian state-owned company is being finalized to operate the plant, as announced during a side-discussion at the Munich Security Conference in February 2024.

In June 2024, Armin Papperger and Ukrainian Minister for Strategic Industries Oleksandr Kamyshin signed an agreement to expand their strategic cooperation at the Ukraine Recovery Conference in Berlin. Days earlier, they opened an armor plant in western Ukraine, operated by the joint venture Rheinmetall Ukrainian Defence Industry LLC. The first Lynx Infantry Fighting Vehicle from Rheinmetall is expected to be delivered to the Ukrainian armed forces by the end of this year, with local production to start soon.

Earlier this month, Western media reported that U.S. intelligence had thwarted plans by the Russian government to assassinate Rheinmetall CEO Armin Papperger due to the company’s support for Ukraine. Rheinmetall has been supplying artillery shells and military vehicles to Ukraine.