German arms manufacturer Rheinmetall secures contract to build advanced ammunition plant in Ukraine
German arms manufacturer Rheinmetall has received orders from the Ukrainian government to build an ammunition plant in Ukraine, according to a press release from Rheinmetall.
The order from the government encompasses the full technical equipment for the factory, right up to its operational launch. The contract is valued at "around three figures in millions of euros." Equipment for the construction and other necessary resources will be delivered to Ukraine shortly.
Production at the ammunition plant in Ukraine is expected to commence within 24 months, with Ukroboronprom responsible for the plant's operation.
"We are turning our words into action and, together with our partner, establishing a Ukrainian center of competence for ammunition," said Rheinmetall CEO Armin Papperger.
Plans for the new artillery ammunition production plant in Ukraine came to light following the Munich Security Conference. At the time, Rheinmetall announced the factory would produce a six-figure number of 155mm artillery shells annually.
The German arms company will hold 51% of the joint venture, while the Ukrainian side will own 49%.