Rheinmetall plans to establish a joint venture with a Ukrainian partner company to build and operate a new production facility for artillery ammunition in Ukraine, according to an announcement made at the Munich Security Conference. The German ammunition manufacturer intends to own a 51% stake in the new enterprise, with the remaining 49% held by the Ukrainian partner. The venture, named the "Ukrainian Competence Center for Ammunition," will focus on producing a substantial six-digit number of 155mm caliber bullets on an annual basis.
The decision to create this joint venture highlights Rheinmetall's commitment to supporting Ukraine, as stated by Armin Papperger, chairman of Rheinmetall's executive board. Papperger believes that this partnership will significantly contribute to Ukraine's ability to defend itself, ultimately enhancing the security of the entire European region.
This initiative follows a previous collaboration between Rheinmetall and Ukraine's state-owned enterprise Ukrainian Defense Industry JSC, which resulted in the establishment of a joint venture in Kyiv back in October. The new joint venture aims to further strengthen the cooperation between the two companies and reinforce Ukraine's ammunition production capabilities.
The memorandum of understanding for this project was signed during the Munich Security Conference, emphasizing the importance placed on defense and security issues in this international forum. As Rheinmetall and its Ukrainian partner work towards the establishment of this new production facility, the joint venture represents a significant step forward in strengthening Ukraine's defense capabilities.
Analyst comment
Positive news. The establishment of a joint venture in Ukraine will increase Rheinmetall’s presence in the market and strengthen Ukraine’s ability to defend itself. This will lead to increased production of artillery ammunition and contribute to the security of Europe.
