German Rheinmetall Receives First State Order from Ukrainian Government for Future Arms Plant in Ukraine

German defence group Rheinmetall has received an order from the Ukrainian government to build an ammunition plant, which was announced in February.

This is reported on the official website of Rheinmetall.

The project is expected to start in the short term. Production of ammunition will begin within 24 months.

The exact value of the deal is not specified, but Rheinmetall describes the amount as ‘low three-digit million euros,’ meaning it is more than 100 million euros.

The company is to produce 155 mm artillery shells, including metal charges. The exact production volumes are not specified, but it will be in the ‘six figures’, i.e. at least 100,000 rounds of ammunition per year.

‘We are putting our words into action and together with our partner we will create a Ukrainian ammunition production centre. The order underlines the trust in Rheinmetall's experience and production capabilities. We are grateful for the opportunity to support the country in its re-industrialisation and strengthening of its defence capabilities,’ said Armin Papperger, CEO of Rheinmetall AG.

As The Gaze previously reported, one of the world's largest defence companies, US-based Northrop Grumman, plans to launch production of medium-calibre ammunition in Ukraine.