Rheinmetall, a leading German arms manufacturer, plans to establish at least four factories in Ukraine, the company announced on 14 March, according to the Guardian.
Rheinmetall and Ukraine’s state concern, the Ukrainian Defense Industry (UkrOboronProm), have formed a joint venture to maintain, repair, and produce military equipment.
The planned factories in Ukraine will focus on producing shells, military vehicles, gunpowder, and anti-aircraft weapons.
“Ukraine is now an important partner for us, where we see a potential of between €2-3 billion [in sales] per year,” stated Rheinmetall CEO Armin Papperger during the presentation of the company’s 2023 results.
The Duesseldorf-based group, known for manufacturing parts of the Leopard tanks that Berlin agreed to send to Ukraine after much hesitation, reported record sales of €7.2 billion last year and aims to exceed €10 billion in 2024. Following the announcement of these results, the company’s shares surged by 5% in Frankfurt.
Rheinmetall had previously announced an agreement in February with a Ukrainian company to build artillery shells in Ukraine. The groundbreaking for this plant, located in an undisclosed area, will occur soon and will be modeled on an ammunition factory Rheinmetall is constructing in Germany.
Additionally, Rheinmetall plans to build a factory in Germany to supply the German and Ukrainian armed forces. The company is also looking to ramp up the production of artillery shells as Ukraine’s European allies struggle to increase output to provide Kyiv with more ammunition.
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