Rheinmetall opens ammunition plant in Ukraine in joint project By Reuters

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BERLIN (Reuters) – German defense company Rheinmetall plans to set up an ammunition plant in Ukraine as part of a joint venture with a Ukrainian partner, the company said on Saturday.

Rheinmetall, one of the world’s largest producers of artillery and tank shells, began ramping up production after Russia invaded Ukraine in 2022. Ukraine is facing a severe ammunition shortage and troops have been forced to withdraw from the devastated eastern city of Avdiivka in recent days.

The German company signed a memorandum of understanding to build and jointly operate the new plant with an unnamed Ukrainian partner at the Munich Security Conference on Saturday.

Rheinmetall said its Ukrainian plant would produce a six-figure annual volume of 155mm caliber bullets, but did not say when production would begin or where the facility would be located.

Rheinmetall will own a 51% stake in the new company, with the remaining 49% held by its Ukrainian partners.

German companies are already involved in joint ventures in Ukraine to service and repair Western weapons sent by Kiev to help defend Russia. It is also planned to produce armored vehicles in Ukraine.