Ukrainian Defense Industry to Produce Ammunition Chemicals in US
Ukraine’s state-owned defense holding Ukrainian Defense Industry has partnered with U.S.-based D&M Holding Company to establish a joint venture for the production of specialized chemicals used in ammunition manufacturing, The Gaze reports.
The new facility will be located not in Ukraine, but in the United States — a strategic decision aimed at protecting critical production from Russian missile and drone attacks.
The agreement was signed on July 11 on the sidelines of the Ukraine Recovery Conference (URC 2025) in Rome. According to the Ukrainian side, the plant will manufacture components used in ammunition destined for Ukraine’s Defense Forces.
While the exact supply chain details remain undisclosed, statements from the Ukrainian company suggest the output will ultimately support domestic production efforts.
Oleh Huliak, Director General of Ukrainian Defense Industry, emphasized that placing the plant on secure territory outside of Ukraine helps ensure continuity in production, despite the ongoing threat of Russian strikes.
At the same time, the decision raises broader questions about security vulnerabilities abroad — including potential sabotage or influence operations in the U.S. — and highlights the political and diplomatic dimensions of relying on American-based capacity.
Still, the move fits into Ukraine’s broader strategy of expanding defense production internationally, a policy that began in earnest with joint facilities in Denmark. It also reflects growing trust between Kyiv and Washington, especially in a critical sector like defense manufacturing.
The American partner, D&M Holding Company, is a recognized producer of equipment for manufacturing small arms ammunition. In September 2024, the U.S. Department of Defense confirmed the company’s involvement in building production lines in Ukraine, acting then as a contractor. This new agreement marks a shift to a more direct and strategic partnership.
Read more on The Gaze: First Results of Ukraine Recovery Conference: 200 Deals Worth €10 Billion Ready for Signing