Germany's Rheinmetall to produce munitions in Ukraine


MUNICH, Germany - German weapons producer Rheinmetall said Saturday it has signed an accord with a Ukrainian company to build artillery munitions in Ukraine, which desperately needs them to fend off Russian attacks.

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CEO of Rheinmetall AG Armin Papperger attends the ground-breaking ceremony for the future site of an ordnance factory where German arms manufacturer Rheinmetall plans to start production from 2025, in Unterluess, Germany on February 12, 2024. (Photo by Ronny HARTMANN / AFP)

The accord was signed on the sidelines of the Munich Security conference by Ukrainian industry minister Alexander Kamyshin and Rheinmetall chief executive Armin Papperger.

For security reasons, the name of the local partner, the location of the factory and the start date of production weren't revealed.

The venture, to be held 51 percent by Rheinmetall and 49 percent by the Ukrainian partner, will bring a "significant contribution to Ukraine's defense capacity and will enhance Europe's security," Papperger said.

It will be Rheinmetall's second venture in Ukraine after one signed in October with state company UDI to repair military vehicles, a first step to eventually producing them.

And last Monday, groundbreaking began for a future munitions factory at a Rheinmetall industrial complex in the northern German town of Unterluss, with Chancellor Olaf Scholz in attendance.

This factory in 2025 will start producing NATO's standard 155-millimetre shells, used in numerous artillery systems, with an eventual output of 200,000 shells a year.

Rheinmetall wants to produce throughout its European plants up to 700,000 artillery shells a year in 2025, up from 400,000 to 500,000 this year, and 70,000 before Russia's invasion of Ukraine.